texas southmost college district - Texas Association of Community

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texas southmost college district - Texas Association of Community
TEXAS SOUTHMOST
COLLEGE DISTRICT
ANNUAL FINANCIAL REPORT
AUGUST 31, 2015 and 2014
TEXAS SOUTHMOST COLLEGE DISTRICT
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Transmittal Letter
GFOA Certificate of Achievement
Organizational Chart
Organizational Data
2
7
8
9
FINANCIAL SECTION
Independent Auditors' Report on Financial Statements
Management's Discussion and Analysis
Basic Financial Statements
Exhibit 1 - Statement of Net Position
Exhibit 2 - Statement of Revenues, Expenses and Changes in Net Position
Exhibit 3 - Statement of Cash Flows
Notes to Financial Statements
11
14
28
29
30
33
REQUIRED SUPPLEMENTARY SECTION
Schedule of District's Share of Net Pension Liability
Schedule of District's Contributions
Notes to Required Supplementary Information
61
62
63
SUPPLEMENTARY SECTION
Schedule A - Schedule of Operating Revenues
Schedule B - Schedule of Operating Expenses by Object
Schedule C - Schedule of Non-Operating Revenues and Expenses
Schedule D - Schedule of Net Position by Source and Availability
65
66
67
68
STATISTICAL SECTION
Net Position by Component
Revenues by Source
Program Expenses by Function
Tuition and Fees
Assessed Value and Taxable Assessed Value of Property
State Appropriation per FTSE and Contact Hour
Principal Taxpayers
Property Tax Levies and Collections
Ratios of Outstanding Debt
Legal Debt Margin Coverage
Pledged Revenue Coverage
Demographic and Economic Statistics - Taxing District
Principal Employers
Faculty, Staff and Administrator's Statistics
Enrollment Details
Student Profile
Transfers to Senior Institutions
Capital Asset Information
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
SINGLE AUDIT SECTION
Schedule E - Schedule of Expenditures of Federal Awards
Schedule F - Schedule of Expenditures of State Awards
Independent Auditors' Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards and the
State of Texas Single Audit Circular
i
90
93
94
TEXAS SOUTHMOST COLLEGE DISTRICT
TABLE OF CONTENTS
(Continued)
Page
Number
SINGLE AUDIT SECTION (Continued)
Independent Auditors' Report on Compliance for Each Major Program and on
Internal Control over Compliance Required by OMB Circular A-133 and the
and the State of Texas Single Audit Circular
Schedule of Findings and Questioned Costs - Federal/State Awards
Summary Schedule of Prior Audit Findings
Corrective Action Plan
ii
96
98
99
100
INTRODUCTORY SECTION
1
(This page reserved for Transmittal Letter.)
2
(This page reserved for Transmittal Letter.)
3
(This page reserved for Transmittal Letter.)
4
(This page reserved for Transmittal Letter.)
5
(This page reserved for Transmittal Letter.)
6
7
TEXAS SOUTHMOST COLLEGE DISTRICT
Texas Southmost College
Board of Trustees
President
Lily F. Tercero, Ph.D.
Vice President of Finance and Administration
Chester E. Lewis III
Vice President of Instruction
Marti Flores, Ph. D.
8
Vice President of Student Services
Michael Shannon
TEXAS SOUTHMOST COLLEGE DISTRICT
ORGANIZATIONAL DATA
FOR THE FISCAL YEAR 2014-2015
Board of Trustees
Officers
Francisco "Kiko" Rendon
Chairman
Juan "Trey" Mendez III, J.D.
Vice Chairman
Ed Rivera
Secretary
Members
Term Expires
Adela Garza
Olmito, Texas
May, 2020
Art Rendon
Brownsville, Texas
May, 2020
Ed Rivera
Laguna Vista, Texas
May, 2016
Juan "Trey" Mendez III, J.D.
Brownsville, Texas
May, 2016
Francisco "Kiko" Rendon
Brownsville, Texas
May, 2016
Reynaldo Garcia, DDS
Brownsville, Texas
May, 2018
Ramon Champion Hinojosa
Brownsville, Texas
May, 2018
Principal Administrative Officers
Lily F. Tercero, Ph.D.
TSC President
Chester E. Lewis III
Vice President of Finance and Administration
Marti Flores, Ed. D.
Vice President of Instruction
Mike Shannon
Vice President of Student Services
UTB/TSC
Francisco G. Cigarroa, M.D.
Chancellor
Pedro Reyes, Ph.D.
Executive Vice Chancellor for Academic Affairs
Dr. William R. Fannin, Ph.D.
President, ad Interim UTB
9
FINANCIAL SECTION
10
11
12
13
TEXAS SOUTHMOST COLLEGE DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
AUGUST 31, 2015
Management’s Discussion and Analysis of Texas Southmost College District’s (the College) financial
performance provides an overview of the District’s financial activities for the fiscal year ended August 31, 2015.
This discussion and analysis is to be read in conjunction with the College’s financial statements which begin on
page 28.
USING THIS ANNUAL REPORT
The financial statements presented in Exhibits 1, 2 and 3 are prepared in accordance with Governmental
Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements and Management’s
Discussion and Analysis for State and Local Governments, and Statement No. 35, Basic Financial Statements and
Management’s Discussion and Analysis for Public Colleges and Universities. The required statements are: the
Statement of Net Position, the Statement of Revenues, Expenses and Changes in Net Position and the Statement
of Cash Flows.
As required by GASB No. 34 and No. 35, the current and prior year financials are prepared using the accrual basis
of accounting, which is the same method used by most private sector companies, and focus on the financial
condition of the College, results of operations and cash flows of the College as a whole. For purposes of
discussion and analysis, we have provided a year to year comparative analysis of the financial statements. As
discussed in Note 27 to the financial statements, the District adopted new accounting guidance, GASB Statement No.
65, Items Previously Reported as Assets and Liabilities in fiscal year 2015.
For the year ended August 31, 2015, the District implemented the provision of GASB Statement No. 68, Accounting
and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contribution
Made Subsequent to the Measurement Date. The fiduciary net position of the Teacher Retirement System of Texas
(TRS) has been determined on the flow of economic resources measurement focus and full accrual basis of
accounting. This included for purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, pension expense, and information about assets, liabilities and
additions to/deductions from TRS’s fiduciary net position.
The notes to the financial statements starting on page 33 provide narrative explanations and additional data needed
for full disclosure in the financial statements.
The Statement of Net Position
The Statement of Net Position includes all the College’s assets and deferred outflows of resources and liabilities and
deferred inflows of resources and change in net position as of the end of the fiscal year. The difference between
assets of resources and deferred outflows and liabilities and deferred inflows of resources is the net position.
Increases and decreases to net position is one indicator of whether the overall financial condition has improved or
deteriorated during the year when considered with other factors such as enrollment, contact hours of instruction,
student retention, and other non-financial information. Finally, the statement of net position is useful when
determining the assets available for continuing the College’s operations as well as how much the College owes to
vendors, bondholders, and other entities at the end of the year.
The Statement of Net Position includes assets and liabilities, current and non-current net assets. Current assets are
those which are available to satisfy current liabilities or liabilities that are due within one year. Non-current assets
include capital assets, long-term investments, and other assets, not classified as current. Non-current liabilities
include bonds payable and other long-term commitments.
14
USING THIS ANNUAL REPORT
(Continued)
The Net Position is divided into three major categories. The first category, investment in capital assets net of
related debt, represents the College’s net investment in property, plant and equipment owned by the institution.
The next category is restricted net assets, which is further divided into two categories: nonexpendable and
expendable. Expendable restricted net assets are available for expenditures but must be spent in accordance with the
restrictions of donors and other external entities. The College only has expendable restricted net assets. The final
category is unrestricted net assets which are assets available to the institution for any lawful purpose of the College.
Further detail regarding assets, liabilities and net assets is presented in the Statement of Net Position and Notes to the
financial statements.
The Statement of Revenues, Expenses and Changes in Net Position
The statement of revenues, expenses and changes in net position represents the College’s overall results of
operations. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recognized
when incurred regardless of when the cash is received or paid. The statement is divided into operating revenues
and expenses and non-operating revenues and expenses. The College is primarily dependent upon four sources of
revenues: state allocations, tuition and fees, grants and contracts and property taxes. Since state allocations
and property taxes are classified as non-operating revenues (per GASB requirements), the College will generally
display an operating deficit before taking into account its non-operating revenues. Therefore, total revenues
and total expenses should be considered in assessing the change in the College’s financial position. When total
revenues exceed total expenses, the result is an increase in net position. When the contrary occurs, the result is a
decrease in net assets. Further detail is presented in the Statement of Revenues, Expenses and Changes in Net
Position and in the Notes to the financial statements.
The College’s net position (the difference between assets and deferred outflows of resources and liabilities and
deferred inflows of resources) provides one measure of the College’s financial health or financial position. Over
time, increases or decreases in the College’s net position are one indicator of whether its financial health is
improving or deteriorating. To fully assess the overall health of the College, however, non-financial factors should
be considered as well, such as changes in the College’s enrollment, property tax base, and the condition of the
College’s facilities.
In the year of implementation of GASB 68, as amended by GASB 71, a restatement to beginning net position was
required for the recording of the beginning net pension liability and for the recording of deferred outflows of
resources for contributions made after the measurement date of the beginning net pension liability and beginning of
the reporting entity’s fiscal year. See note 2 and note 27 in the accompanying Notes to Financial Statements.
Since the District does not have all the audited beginning balances for deferred inflows of resources and deferred
outflows of resources related to pensions required to properly restate fiscal year 2014 financial statements, the
restatement will be made directly to the beginning net position in the fiscal year 2015 financial statements as a
cumulative effect of a change in accounting principle. Due to this method of recording pension amounts,
comparability between fiscal years is impacted.
The Statement of Cash Flows
The Statement of Cash Flows provides the College’s cash receipts and payments for the year. This statement is not
intended to replicate, on a cash basis, the operating statement. Instead, it is intended to compliment the accrual-basis
financial statements by providing functional information about financing, capital and investing activities. The cash
flow approach concentrates on the underlying nature of a transaction.
15
The information contained in the Statement of Cash Flows assesses the College’s ability to generate future net cash
flows, meet obligations as they come due and needs for external financing. In addition, differences between
operating income, associated cash receipts and payments, and the effects on the financial position of both its cash
and its non-cash investing, capital and financing transactions can be identified.
In addition to the basic financial statements and accompanying notes, this report includes certain required
supplementary information concerning the College’s progress in funding its obligation to provide pension benefits to
its employees. Required supplementary information can be found beginning on page 61 of this report.
FINANCIAL ANALYSIS
Statement of Net Position
The following analysis focuses on the Statement of Net Position, which is condensed in Table l. The complete
Statement of Net Position can be found on page 28.
TABLE 1
CONDENSED STATEMENT OF NET POSITION
(in millions)
August 31,
2015
Current Assets
Noncurrent Assets
Cash and Cash Equivalents – Restricted
Capital Assets, Net of Accumulated Depreciation
Other Noncurrent Assets
$
Total Assets
Deferred Outflows of Resources
Current Liabilities
Noncurrent Liabilities
Total Liabilities
Deferred Inflow of Resources
Net Position
Invested in Capital Assets, Net of Related Debt
Restricted Expendable
Unrestricted
$
Total Net Position
46.7
August 31,
2014
$
55.6
August 31,
2013
$
28.1
36.4
135.4
0.1
22.2
138.0
0.2
18.8
153.2
0.1
218.6
216.0
200.2
1.4
0.3
0.4
12.7
69.7
14.4
75.8
13.1
85.9
82.4
90.2
99.0
6.0
0.6
0.7
61.8
23.7
46.1
56.1
28.8
40.6
60.9
24.5
15.5
131.6
$
125.5
$
100.9
Total Assets increased by $2.6 million in fiscal year 2015. Current Assets decreased by $8.9 million which was
primarily due to a $4 million decrease in unrestricted cash and cash equivalents, and a $4.9 million decrease in
accounts receivable, net of allowances. Noncurrent Assets increased $11.5 million due primarily to an increase in
restricted cash and cash equivalents.
16
Statement of Net Position (Continued)
At the end of fiscal year 2015, total liabilities decreased by $7.8 million. Noncurrent Liabilities decreased due to
the refinancing of the series 2005 and 2006 Tax Bonds and series 2006 Tax Notes. The College issued Limited Tax
Refunding Bond Series 2014A and the Maintenance Tax Refunding Bonds, Series 2014B. The net effect of the
refinancing and scheduled debt payments account for an $8.2 million decrease.
Significant changes in assets, liabilities and net position are attributable to implementation of GASB 68, as amended
by GASB Statement No. 71. The District recorded deferred outflows related to pensions (an asset) of $0.2 million
and deferred inflows related to pensions of $0.6 million (a liability) and a net pension liability of $2.1 million, for an
increase to liabilities of $2.8 million.
An increase in deferred revenue, $1.0 million, and a decrease to accounts payable, $2.6 million, make up the
remaining significant changes in total liabilities.
Total Net Position (assets and deferred outflows of resources and liabilities and deferred inflows of resources)
increased by $36.3 million over the past three fiscal years. The College experienced an increase of approximately
$6.1 million, $24.6 million, and $5.6 million in fiscal years 2015, 2014 and 2013 as compared to the previous
respective fiscal years. Unrestricted net position – the part of net assets that can be used to finance day-to-day
operations without constraints established by debt covenants, enabling legislation, or other legal requirements –
represents $46.1 million of total net position at August 31, 2015.
Statement of Revenues, Expenses and Changes in Net Position
The following analysis focuses on the Statement of Revenues, Expenses and Changes in Net Position presented in
condensed form in Table 2. The complete Statement of Revenues, Expenses and Changes in Net Position can be
found on page 29.
TABLE 2
CONDENSED STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
(in millions)
August 31,
2015
Operating Revenues
Operating Expenses
Non-operating Revenue
Non-operating Expenses
$
34.9
(49.1)
26.1
(3.5)
Increase in Net Position
Adjustment to Net Position
$
8.5
(2.4)
Net Position - Beginning of the Year
Net Position - End of the Year
August 31,
2014
131.6
$
24.6
-
125.5
$
31.5
(44.8)
42.1
(4.2)
August 31,
2013
5.6
(1.6)
100.9
$
125.5
96.9
$
Table 3 details the College’s sources of operating revenue. The key sources of operating revenues are:
Tuition and Fees (net of scholarship discounts) and Grants and Contracts.
17
22.8
(41.7)
28.9
(4.4)
100.9
Statement of Revenues, Expenses and Changes in Net Position (Continued)
TABLE 3
OPERATING REVENUE
(in millions)
Fiscal Year
2015
Fiscal Year
2014
Fiscal Year
2013
Amount
Percentage
of Total
Amount
Percentage
of Total
Amount
Percentage
of Total
Net Tuition and Fees
$ 12.1
34.5%
$ 11.6
36.8%
$ 17.8
77.7%
Grants and Contracts
21.7
62.1%
18.6
59.0%
4.4
19.2%
Auxiliary Enterprises
0.9
2.5%
1.0
3.2%
0.5
2.2%
Other Operating Revenue
0.3
0.8%
0.3
1.0%
0.2
0.9%
$ 34.9
100.0%
$ 31.5
100.0%
$ 22.9
100.0%
Total Operating Revenue
Operating revenues were affected by the following key factors:

The cost for In-district Resident Tuition and Fees for 12 semester credit hours remained comparable to
fiscal year 2014. Fiscal year 2014 was TSC's first year of independent operations and was no longer
required to follow a tuition and fee concordance policy with the University of Texas at Brownsville
(UTB). In 2014, the Board of Trustees adopted an independent rate that lowered tuition and fees to rates
that were more consistent with tuition and fees of community colleges in the State of Texas.

Grants and Contracts increased slightly in FY 2015 primarily due to remittance of financial aid received
by UTB to TSC for the payment of tuition and fees and allocation of student aid to TSC students. At
August 31, 2015, TSC and UTB continued to be accredited as a single institution and all federal financial
aid was received by UTB for students attending TSC.

Other changes in Net Tuition and Fees are attributed to changes in scholarships, discounts and
allowances.
18
Statement of Revenues, Expenses and Changes in Net Position (Continued)
Table 4 details the College’s sources of non-operating revenues. The key sources of non-operating
revenues are state appropriations and ad valorem taxes.
TABLE 4
NON-OPERATING REVENUE
(in millions)
Fiscal Year
2015
Amount
State Appropriations
Percentage
of Total
Percentage
of Total
Amount
Percentage
of Total
7.0
16.5%
$ 11.2
38.6%
18.1
43.0%
17.7
61.0%
Amount
$
Fiscal Year
2013
6.8
26.2%
Ad Valorem Taxes
18.4
70.6%
Investment Income
0.1
0.3%
0.1
0.2%
0.1
0.4%
Other Non-Operating Revenue
0.7
2.8%
16.9
40.3%
-
0.0%
$ 26.1
100.0%
$ 42.1
100.0%
Total Non-Operating Revenue
$
Fiscal Year
2014
$ 29.0
100.0%
Non-operating revenues were affected by the following key factors:

State appropriations remain comparable to the prior fiscal year. In 2014, the decrease in state
appropriations was primarily due to the adjustment in contact hours reported to the state on behalf of
the College and adjustments related to transition funding related to operational separation of the
College from UTB. The State of Texas finalized the allocation of appropriations during the fiscal year
and management had estimated this impact and adjusted the fiscal year 2015 budget accordingly.

Property tax revenue increased by about $0.5 million from fiscal year 2014 to fiscal year 2015 as a result
of a 1.0% increase in taxable assessed property valuations. Property tax revenue increased by about $0.4
million from fiscal year 2013 to fiscal year 2014 as a result of a 2.0% increase in taxable assessed
property valuations. The tax rates for the Texas Southmost College are $0.164094, $0.162935, and
$0.162935 per $100 valuation for the fiscal years ended 2015, 2014 and 2013, respectively.

Other Non-Operating Revenue decreased by $16.2 in FY 2015 which is primarily due to the settlement
agreement with the University of Texas System (UTS) in FY 2014 that resulted in the sale and exchange
of buildings, improvements, land and personal property.

Investment income for FY 2015 is comparable to FY 2014 and FY 2013. Earning rates for funds are
also low due to the overall decrease investment rates available.
19
Statement of Revenues, Expenses and Changes in Net Position (Continued)
Key sources of revenue in total for the College are state allocations, grants and contracts, property taxes, and
tuition and fees (net of scholarship discounts). Table 5 shows a comparison of the breakdown of total revenues by
source for the College in Fiscal Years 2015 and 2014.
TABLE 5
TOTAL REVENUES
40%
36%
31%
30%
25%
25%
24%
21%
20%
FY 2015
16%
12%
FY 2014
10%
10%
0%
0%
State Appropriations Net Tuition and Fees
Ad Valorem Taxes
Grant and Contracts
Other Revenue
In fiscal year 2015, Grant and Contracts is the largest source at 36% primarily due to the transfer of financial aid
received by UTB to TSC in fiscal year 2015. State Appropriations are 12% of total revenues as compared to 10%
in fiscal year 2014. Net Tuition and Fees in fiscal year 2015 are 21% as compared to 16% in fiscal year 2014. Ad
Valorem taxes increased to 31% from 25% in fiscal years 2015 and 2014 respectively. Other Revenue is 0% due
to the one time transaction in FY2014 with UTS of the sale and/or exchange of buildings, improvements, land and
personal property.
Table 6 displays the breakdown of operating expenses by natural classification for the College.
TABLE 6
OPERATING EXPENSES
Natural Classification
(in millions)
August 31,
2015
Salaries
Benefits
Other Expenses (excluding UTB Contract)
Contracted Services - UTB
Depreciation
Total Operating Expenses
August 31,
2014
August 31,
2013
$
10.5
1.8
32.8
3.9
$
9.7
2.1
29.2
3.8
$
1.6
0.2
6.5
30.0
3.5
$
49.1
$
44.8
$
41.8
20
Statement of Revenues, Expenses and Changes in Net Position (Continued)
Table 7 displays the breakdown of the College’s expenses by functional classification.
TABLE 7
OPERATING EXPENSES
Functional Classification
(in millions)
August 31,
2015
Instruction
Public Service
Academic Support
Student Services
Institutional Support
Operations and Maintenance of Plant
Scholarships and Fellowships
Depreciation
Contracted Services - UTB
Total Educational Activities
Auxiliary Enterprises
Total Operating Expenses
August 31,
2014
August 31,
2013
$
6.1
0.3
1.7
2.6
11.9
4.8
16.8
3.9
-
$
3.6
0.2
3.2
3.3
10.6
4.8
14.2
3.8
-
$
7.0
0.9
3.5
30.0
$
48.0
1.0
$
43.7
1.1
$
41.4
0.4
$
49.1
$
44.8
$
41.8
21
Statement of Revenues, Expenses and Changes in Net Position (Continued)
Table 8 displays a comparison of the breakdown of the expenses by functional classification for the College in
Fiscal Years 2015 and 2014.
TABLE 8
OPERATING EXPENSES
Functional Classification
(in millions)
$30.0
$25.0
$27.4
FY 2015
FY 2014
$24.5
$20.0
$15.0
$11.9
$10.6
$10.0
$5.0
$4.8 $4.8
$3.9 $3.8
$1.0 $1.1
$0.0
Operation Expenses Institutional Support
Operation &
Auxiliary Enterprises Depreciation Expense
and UTB Contract
Maintenance of Plant
For fiscal year 2015, the College continued independent operations while maintaining a combined accreditation
with The University of Texas at Brownsville. During fiscal year 2013, the College had contracted with
UTB to provide instruction and other related essential services and would incur expenses as reflected in the
Contract Services - UTB category. In fiscal year 2014, the College began independent operations and incurred
expenses related to instruction, student services, academic support, and other normal operating functions related
to operating a community college. In December 2015, Texas Southmost College became a fully accredited
independent community college under SACSCOC.
22
Statement of Cash Flows
The Condensed Statement of Cash Flows appears in Table 9. The complete Statement of Cash Flows appears in
page 30 and 31 of this report.
TABLE 9
CONDENSED STATEMENT OF CASH FLOWS
(in millions)
August 31,
2015
Cash provided/ used by:
Operating Activities
Noncapital Financing Activities
$
(6.7)
Capital and Related Activities
Investing Activities
Net Increase (Decrease) In Cash
$
$
$
(11.8)
18.5
22.1
(1.7)
0.1
20.5
0.1
(2.3)
0.1
$
67.3
$
(10.4)
August 31,
2013
18.5
10.1
Cash-Beginning of the Year
Cash-End of Year
August 31,
2014
77.4
28.7
$
38.6
$
67.3
8.1
30.5
$
38.6
Total Cash and Cash Equivalents increased by $10.1 million in fiscal year 2015 and $28.7 million during fiscal
year 2014. Major factors impacting cash and cash equivalents are described below by source.
Operating Activities: During the fiscal year 2015 and fiscal year 2014, cash flows from operations resulted in an
outflow of $6.7 and $10.4 million, respectively. The major source of cash receipts was from grant and contracts
($26.6 in 2015 and $18.6 in 2014) and tuition and fees, net of scholarship allowances and discounts ($13.4 million
in 2015 and $8.3 million in 2014). The College’s major cash outlay was for payments to suppliers and UTB ($37.4
million in 2015 and $29.8 million in 2014) and for payments related to employees ($10.4 in 2015 and $9.1 in 2014).
Non-capital Financing Activities: The College had a positive cash flow of $18.5 in fiscal year 2015 and $18.1
million in fiscal year 2014 from the collection of property taxes and receipt of state appropriations. Property taxes
were collected at a rate of 96.1% and 94.9% of the current year’s tax levy for fiscal year 2015 and fiscal year 2014,
respectively. (See table 10 below for more information on property taxes.)
Capital and Related Financing Activities: In fiscal year 2015, capital and related financing activities resulted in a net
cash outflow of $1.7 million. The cash outflows net of $7.6 million resulted from the issuance of refunding bonds,
principal & interest payments and bond issuance costs. In addition, a regular cash inflow of $7.1 million was
recognized from the collection of property taxes and a cash outflow of $1.3 million related to the acquisition of
capital assets.
23
Statement of Cash Flows (continued)
In fiscal year 2014, capital and related financing activities resulted in a net cash inflow of $20.5 million. The cash
inflows net of $13.7 million resulted from the University of Texas System transaction, the defeasance of the student
union building bonds and the regularly scheduled principal and interest payments for the remaining outstanding
bonds, and other capital asset transactions. In addition, a regular cash inflow of $6.8 million was recognized from the
collection of property taxes related to bond financings.
Investing Activities Cash flows from investing activities represent investment earnings generated from the
College’s various checking and certificate of deposit accounts. Investment opportunities are resulting in limited
earning opportunities for short-term investments due to the economic downturn that exists in the current financial
market.
Property taxes are an essential source of revenue for the College. The following table provides information
regarding tax collection and assessed valuation for the Texas Southmost College District.
TABLE 10
PROPERTY TAX INFORMATION
August 31,
2015
Total Tax Rate per $100
Total Tax Collections
Tax Collection Rate
Assessed Valuation
August 31,
2014
$
$
0.164094
18,444,126
96.09%
$ 12,493,414,367
$
$
0.162935
17,973,708
94.89%
$ 11,319,374,157
August 31,
2013
$
$
0.162935
17,727,167
94.74%
$ 11,097,815,199 The College’s total tax collections increased by approximately 1.4%, due to a 2.0% gross increase in assessed
valuations and no change to in the total tax rate. For fiscal year 2015, the Texas Southmost College Board of
Trustee's adopted the same tax rate as fiscal year 2014. In August 2015, the Board of Trustees adopted the
calculated effective tax rate for the upcoming fiscal year. Overall, the College’s tax collection rate has remained
strong over the past decade.
24
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of Fiscal Year 2015, the College had approximately $135.4 million (net of accumulated depreciation
and amortization) invested in a broad range of capital assets, including instructional and athletic facilities,
maintenance of buildings equipment, and computer software. The decrease in capital assets primarily relates to
the depreciation and amortization of existing capital assets.
Note 5 of the financial statements, which begin on page 33, provides further detailed information regarding the
College’s capital assets. Table 11 summarizes capital asset activity for the year ended August 31, 2015.
TABLE 11
CAPITAL ASSETS AT FISCAL YEAR END 2015
(in millions)
Not Depreciated
Buildings and Other Capital Assets
Balance
August 31, 2014
Increases and
Reclassifications
$
6.7
190.1
(58.8)
$
1.3
(3.9)
$
-
$
6.7
191.4
(62.7)
$
138.0
$
(2.6)
$
-
$
135.4
Less: Accumulated Depreciation and Amortization
Total Capital Assets
Balance
August 31, 2015
Decreases
Debt
The College’s general obligation bond ratings, as assigned by Fitch Ratings and Standard and Poor’s are AAand AA- respectively. The College’s revenue bond rating is A, as assigned by Standard and Poor’s.
At year-end, the College had approximately $71.6 million in total bonds payable. Notes 6 through 9 of the
financial statements which begin on page 41 provide further detailed information regarding the College’s debt
obligations. Table 12 summarizes these amounts by type of debt instrument.
In February 2015, the College issued the 2014A and 2014B refunding bonds at a premium, in the amounts of $30
million and $3.1 million, respectively. All proceeds from the bond issuances were used to refinance outstanding
balances of the Limited Tax Bonds, Series 2005, Limited Tax Bonds, Series 2006 and Maintenance Tax Notes,
Series 2006.
25
Debt (Continued)
TABLE 12
BONDS PAYABLE AT FISCAL YEAR END 2015
(in millions)
Balance
August 31, 2014
General Obligations
$
64.1
Revenue Bonds
16.1
Plus Premium on Bonds
0.6
(0.4)
Less Deferred Amounts on R
Total Bonds Payable $
80.4
Increase
$
33.2
7.0
1.3
$
41.5
Decrease
Balance
August 31, 2015
$
(41.0)
(0.7)
(1.7)
(0.0)
$
56.3
15.4
5.9
0.9
$
(43.4)
$
78.5
The Student Union Building Bonds were issued in March of 2000. They were sold for the construction, operation
and maintenance of the Student Union Building. $7.1 million of the bonds outstanding for the Student Union
Building were refunded in 2005. This obligation is paid by student union fees assessed to the students. During fiscal
year 2014, the Student Union Building Bonds were defeased as part of the transaction to sell the Student Union
Building to UTS. The decrease in Revenue Bonds includes the removal of the $6.2 million of principal that was
outstanding at August 31, 2013.
In May 2002, the College issued a $5 million Revenue Bond to fund various capital projects on campus. These
projects included the ITECC, the development of the Village at Fort Brown student housing project, and other
improvements. $4.775 million of these revenue bonds were refunded and an additional $1.815 million were
secured for campus improvements for a total of $6.590 million in 2006. Pledged revenues derived from tuition
and fees, student and employee parking fees, and interest on investment earnings are the sources for debt service.
In fiscal year 2014, the Village at Fort Brown was demolished and the land will be held for possible development
in the future.
In February 2005, the College made the first bond issuance for $19.805 million out of the total $68 million in
bonds that were approved by the voters in November of 2004. The second issuance for $24.945 million was made
in April 2006, the third issuance for $14 million was made in June 2007, the fourth issuance for $5 million was
made in June 2008, and the fifth and final issuance for $4 million was made in June 2009. These issuances will
be used for the construction of seven major capital projects on campus. The source of revenue for this debt
service is ad valorem tax levy.
In May 2006, June 2007, June 2008 and June 2009 the College also issued $4.835 million, $2 million, $5 million
and $3.25 million respectively in Maintenance Tax Notes to fund various renovation and restoration projects on
campus. The source of revenue for this debt service is ad valorem tax levy.
26
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND
RATES
On November 10, 2010, the University of Texas’ Board of Regents voted to terminate the existing partnership
with Texas Southmost College. On February 17, 2011, the Texas Southmost College Board of Trustees voted to
create an independent community college and reaffirmed the decision to separate on March 22, 2011. On June 20,
2011, the Texas Legislature passed a new and amended law to clear a path to allow for the separation of the
partnership and the establishment of an independent university and an independent community college. The new
legislation provides a termination date for the partnership of August 31, 2015 or to the extent necessary to ensure
accreditation. Until separate accreditation is achieved, TSC students are accredited under the UTB/TSC
accreditation.
During fiscal year 2011, the Texas Southmost College Board of Trustees established a transition team to work
with the University of Texas System transition team to begin discussions to end the partnership. In October 2011,
Dr. Lily Tercero was hired as the new president for TSC and she will work to reestablish the community college
as an independent and fully functional college which will offer associate degrees, vocational training, certificates,
and continued education in the State of Texas. During fiscal year 2012, on-going work has continued towards
becoming operationally separated in the fall semester of 2013 and working to become separately accredited by
2015. In fiscal year 2014, TSC began its first year of independent operations of the college.
In January 2014, TSC and University of Texas System entered into a settlement agreement for the sale and
exchange of buildings, land, improvements and personal property which resulted in the cash inflow to TSC of
over $29 million. Approximately $5 million of the proceeds and the balance held in the debt reserve fund was
used to defease the student union building fees revenue refunding bonds, series 2005. In addition to the property
transactions, TSC entered into facility leasing arrangements with UT system for over $2 million in rent revenue
in fiscal year 2014.
The Board of Trustees considered many factors when establishing the fiscal year 2014 budget and tax rates.
Tuition and fees revenues are lowered by approximately $1,000 per semester for in-district students taking
general education courses as compared to the prior fiscal year. For the fiscal year 2015 budget, the Board of
Trustees lowered the tuition and fees rates due to the elimination of the student union fee of $45.30 per student
semester. Texas Southmost College will examine tuition rates for the future budget and will be seeking ways to
make the cost to students affordable.
The Board of Trustees adopted the effective tax rate for fiscal year 2016, which is generally attributed as no
increases in taxes with a slight adjustment to the tax rate. Collections are projected to remain fairly strong.
Expenditures are expected to stay in line with the projected overall increase in revenues as the institution strives
to meet instructional as well as campus improvement needs.
In December 2015, the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC)
Annual Meeting in Houston, we received the news from the SACSCOC Board of Trustees that the Texas
Southmost College District is now a separately accredited community college.
CONTACTING THE COLLEGE’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with
a general overview of the College’s finances and to show the College’s accountability for the funds it receives.
If you have questions about this report or need additional financial information, contact the Texas
Southmost College District Office at (956) 295-3600.
27
EXHIBIT 1
TEXAS SOUTHMOST COLLEGE DISTRICT
Statement of Net Position
August 31, 2015 and 2014
2015
ASSETS
Current Assets
Cash and cash equivalents
Accounts receivable (net)
Prepaid expenses
Total Current Assets
$
Noncurrent Assets
Restricted cash and cash equivalents
Endowment investments
Capital assets (net)
Total Noncurrent Assets
41,025,151
4,883,051
741,963
46,650,165
2014
$
45,073,385
9,810,434
760,451
55,644,270
36,406,904
121,818
135,400,331
171,929,053
22,242,265
126,697
137,993,605
160,362,567
218,579,218
216,006,837
1,389,979
1,389,979
352,927
352,927
LIABILITIES
Current Liabilities
Accounts payable
Accrued liabilities
Accrued compensable absences
Funds held for others
Unearned revenue
Bonds payable - current portion
Total Current Liabilities
559,535
388,713
407,001
7,269,643
4,075,000
12,699,892
3,148,359
443,796
226,603
8,303
6,204,360
4,390,000
14,421,421
Noncurrent Liabilities
Net pension liability
Bonds payable
Total Noncurrent Liabilities
2,107,582
67,550,000
69,657,582
75,765,000
75,765,000
82,357,474
90,186,421
6,008,138
6,008,138
633,501
633,501
61,775,918
56,051,793
960,288
14,524,410
5,414,996
2,595,739
251,878
46,080,356
288,573
15,858,072
9,869,662
2,420,333
251,786
172,137
40,627,486
Total Assets
Deferred Outflows of Resources
Deferred refunding costs
Total Deferred Outflows of Resources
Total Liabilities
Deferred Inflows of Resources
Unamortized premiums on bonds
Total Deferred Inflows of Resources
NET POSITION
Investment in capital assets, net of related debt
Restricted for
Expendable
Endowment
Capital projects
Debt service
Scholarships
Institutional scholarships
Grants
Unrestricted
Total Net Position (Schedule D)
$
The accompanying notes are an integral part of these financial statements.
28
131,603,585
$
125,539,842
EXHIBIT 2
TEXAS SOUTHMOST COLLEGE DISTRICT
Statement of Revenues, Expenses and Changes in Net Position
For The Year Ended August 31, 2015 and 2014
2015
OPERATING REVENUES
Tuition and fees (net of discounts of $841,401 &
$949,910, respectively)
Federal grants and contracts
State grants and contracts
Local grants and contracts
Auxiliary enterprises
General operating revenues
Total Operating Revenues (Schedule A)
$
OPERATING EXPENSES
Instruction
Public service
Academic support
Student services
Institutional support
Operation and maintenance of plant
Scholarships and fellowships
Auxiliary enterprises
Depreciation
Total Operating Expenses (Schedule B)
Operating (Loss)
Non-Operating Revenues (Expenses)
State appropriations
Maintenance ad valorem taxes
Debt service ad valorem taxes
Investment income
Interest on capital related debt
Gain (Loss) on sale of capital assets
Allowance for uncollectible expense
Other non-operating revenues
Other non-operating expenses
Total Non-Operating Revenues (Schedule C)
Increase in Net Position
NET POSITION
Net Position - Beginning of Year
Cumulative Effect of Change in Accounting Principle
Net Position - End of Year
12,050,358
29
$
11,611,878
374,544
1,420,925
19,902,764
887,839
291,668
34,928,098
232,385
1,664,776
16,661,900
1,000,418
305,516
31,476,873
6,073,177
278,393
1,741,201
2,571,383
11,898,659
4,772,338
16,784,115
1,027,832
3,911,705
49,058,803
3,588,434
162,099
3,155,220
3,258,324
10,637,044
4,802,797
14,215,285
1,142,881
3,826,171
44,788,255
(14,130,705)
(13,311,382)
6,846,957
11,323,301
7,120,825
75,556
(2,884,008)
(231,726)
742,363
(410,921)
22,582,347
6,954,881
11,284,079
6,777,839
138,139
(3,736,908)
16,671,641
(415,211)
280,664
(10,283)
37,944,841
8,451,642
24,633,459
125,539,842
(2,387,899)
$ 131,603,585
The accompanying notes are an integral part of these financial statements.
2014
100,906,383
$ 125,539,842
EXHIBIT 3
TEXAS SOUTHMOST COLLEGE DISTRICT
Statement of Cash Flows
For The Year Ended August 31, 2015 and 2014
2015
2014
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from students and other customers
Receipts from grants and contracts
Payments to suppliers for goods or services
Payments to or on behalf of employees
Receipts from auxiliary services
Net cash provided (used) by operating activities
$
13,407,309
26,625,616
(37,185,079)
(10,415,343)
887,839
(6,679,658)
$
8,245,157
18,559,061
(29,831,272)
(9,097,924)
1,744,191
(10,380,787)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Receipts from state appropriations
Receipts from ad valorem taxes
Other non-operating revenue
Other non-operating expenses
Net cash provided by non-capital financing activities
6,846,957
11,323,301
742,363
(447,838)
18,464,783
6,954,881
11,284,079
280,664
(436,009)
18,083,615
7,120,825
(1,318,431)
37,117,459
(41,785,000)
(2,884,008)
(1,749,155)
6,777,839
(23,049,902)
34,404,328
16,671,641
(10,185,000)
(3,736,908)
20,881,998
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Receipts from ad valorem tax revenues
Acquisition of capital assets
Disposal of capital assets
Gain from sale of capital assets
Proceeds on issuance of capital debt
Payments on capital debt - principal
Payments on capital debt - interest and issuance costs
Net cash provided (used) by capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
Net cash provided (used) by investing activities
80,435
80,435
106,603
106,603
Increase (decrease) in cash and cash equivalents
10,116,405
28,691,429
Cash and cash equivalents - September 1
67,315,650
38,624,221
Cash and cash equivalents - August 31
Cash and cash equivalents
Restricted cash and cash equivalents
Total cash and cash equivalents
$
77,432,055
$
67,315,650
$
41,025,151
36,406,904
77,432,055
$
45,073,385
22,242,265
67,315,650
$
30
$
EXHIBIT 3
TEXAS SOUTHMOST COLLEGE DISTRICT
Statement of Cash Flows
For The Year Ended August 31, 2015 and 2014
(Continued)
2015
2014
RECONCILIATION OF OPERATING LOSS TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating (loss)
$
Adjustments to reconcile operating income (loss) to net cash used by
operating activities:
Depreciation expense
Changes in assets and liabilities:
Receivables (net)
Prepaid expenses
Accounts payable
Accrued liabilities
Compensated absences
Unearned revenue
Net cash provided (used) by operating activities
The accompanying notes are an integral part of these financial statements.
31
$
(14,130,705)
$
(13,311,382)
3,911,705
3,826,171
4,927,383
18,488
(2,597,127)
(55,083)
180,398
1,065,283
(6,679,658)
(2,313,327)
90,562
612,173
67,860
119,412
527,744
(10,380,787)
$
NOTES TO FINANCIAL STATEMENTS
32
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
1.
Reporting Entity
Texas Southmost College was established in 1926, in accordance with the laws of the State of Texas to
serve the educational needs of Brownsville and the surrounding communities. The Southmost Union
Junior College District was established in 1949 and in 2005 officially changed its name to Texas
Southmost College District (the District). Texas Southmost College District is considered to be a
special-purpose, primary government according to the definition in Governmental Accounting Standards
Board (GASB) Statement 14. While the District receives funding from local, state and federal sources,
and must comply with the spending, reporting and record keeping requirements of these entities, it is not
a component unit of any other governmental entity.
2.
Summary of Significant Accounting Policies
Report Guidelines
The significant accounting policies followed by the District in preparing these financial statements are in
accordance with the Texas Higher Education Coordinating Board’s Annual Financial Reporting
Requirements for Texas Public Community and Junior Colleges. The District applies all applicable
GASB pronouncements and all applicable Financial Accounting Standards Board (FASB) statements
and interpretations issued on or before November 30, 1989, unless they conflict or contradict GASB
pronouncements. The District has elected not to apply FASB guidance issued subsequent to November
30, 1989, unless specifically adopted by the GASB. The District is reported as a special-purpose
government engaged in business type activities.
Tuition Discounting
Texas Public Education Grants – Certain tuition amounts are required to be set aside for use as
scholarships by qualifying students. This set aside, called the Texas Public Education Grant (TPEG), is
shown with tuition and fee revenue amounts as a separate set aside amount (Texas Education Code
§56.033). For fiscal year 2015, scholarships are transferred to University of Texas – Rio Grande Valley
(UTRGV) to be awarded to students. Amounts transferred to UTRGV are recorded as tuition discounts.
Scholarship Allowances and Discounts – The District awards tuition and fee scholarships from
institutional funds to students who qualify. Scholarships are transferred to University of Texas – Rio
Grande Valley to be awarded to students. Amounts transferred to UTRGV are recorded as tuition
discounts.
Basis of Accounting
The financial statements of the District have been prepared on the accrual basis whereby all revenues are
recorded when earned and all expenses are recorded when they have been reduced to a legal or
contractual obligation to pay.
Budgetary Data
Each community college district in Texas is required by law to prepare an annual operating budget of
anticipated revenues and expenditures for the fiscal year beginning September 1st. The District’s Board
of Trustees adopts the budget, which is prepared on the accrual basis of accounting. A copy of the
approved budget and subsequent amendments must be filed with the Texas Higher Education
Coordination Board, Legislative Budget Board, Legislative Reference Library, and Governor’s Office of
Budget and Planning by December 1st.
33
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Cash and Cash Equivalents
The District’s cash and cash equivalents are considered to be cash on hand, demand deposits and shortterm investments with original maturities of three months or less from the date of acquisition.
Investments
In accordance with GASB Statement No. 31 Accounting and Financial Reporting for Certain
Investments and External Investment Pools, investments are reported at fair value. Fair values are based
on published market rates. Short-term investments have an original maturity greater than three months
but less than one year at time of purchase. Long-term investments have an original maturity of greater
than one year at the time of purchase.
Pledges
Conditional pledges to be received in future periods, and intentions to pledge, are recognized when the
specified conditions are met or the promise is made. These pledges are restricted for the Arts Center.
Pledges Receivable
2015
2014
Due within one year
Due after one year
Subtotal:
Less allowance for uncollectible
Total pledges receivable
$ 75,279
239,791
315,070
(283,563)
$ 31,507
$ 75,279
239,791
315,070
(283,563)
$ 31,507
Inventories
Inventories consist of consumable office supplies, physical plant supplies. Inventories are valued at cost
and are under the charged to expense as consumed.
Capital Assets
Capital assets are recorded at cost at the date of acquisition, or fair value at the date of donation. For
equipment, the District’s capitalization policy includes all items with a unit cost of $5,000 or more and
an estimated useful life in excess of one year. Renovations of $100,000 to buildings, infrastructure and
land improvements that significantly increase the value or extend the useful life of the structure are
capitalized. The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets’ lives are charged to operating expense in the year in which the expense is
incurred.
Depreciation is computed using the straight-line method over the estimated useful lives of the assets,
generally 50 years for buildings, 20 years for land improvements, 15 years for library books, 10 years for
furniture, machinery, vehicles and other equipment and 5 years for telecommunications and peripheral
equipment.
34
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Unearned Revenues
Tuition and fees of $7,269,643 and $6,204,360 have been reported as unearned revenue at August 31,
2015 and 2014, respectively.
Deferred Inflows
In addition to liabilities, the statement of net position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until that time. Governments are only permitted to report deferred
inflows in circumstances specifically authorized by the GASB.
Deferred Outflows
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized
as an outflow of resources (expense) until then. Governments are only permitted to report deferred
outflows in circumstances specifically authorized by the GASB. A typical deferred outflow for
community colleges is a deferred charge on refunding debt.
Estimates
The preparation of the financial statements inconformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Operating and Non-Operating Revenue and Expense Policy
The District distinguishes operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services in connection with the District’s
principal ongoing operations. The principal operating revenues are tuition and related fees. The major
non-operating revenues are state appropriations and property tax collections. Operating expenses include
the cost of sales and services, administrative expenses, and depreciation on capital assets. The Bookstore
is not operated by the District.
Pensions
For the year ended August 31, 2015, the District implemented the provisions of GASB Statement No.
68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension
Transition for Contributions Made Subsequent to the Measurement Date. The fiduciary net position of
the Teacher Retirement System of Texas (TRS) has been determined on the flow of economic resources
measurement focus and full accrual basis of accounting. This includes for purposes of measuring the net
pension liability, deferred outflows of resources and deferred inflows of resources related to pensions,
pension expense, and information about assets, liabilities and additions to/deductions from TRS’s
fiduciary net position. Benefit payments (including refunds of employee contributions) are recognized
when due and payable in accordance with the benefit terms. Investments are reported at fair value.
35
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Prior Year Restatement
In the year of implementation of GASB 68, as amended by GASB 71, a restatement to beginning net
position will be required for the recording of the beginning net pension liability and for the recording of
deferred outflows of resources for contributions made after the measurement date of the beginning net
pension liability and beginning of the reporting entity’s fiscal year.
Beginning Net Position as of September 1, 2014, has been restated as follows for implementation of
GASB statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date.
Prior Year Restatement of Beginning Net Position
Beginning Net Position
$
Prior period adjustment-implementation of GASB 68:
Net pension liability (measurement date as of August 31, 2014)
Deferred outflows - district or college contributions made during FY2014
Accumulated overpayment contributions
Subtotal:
08/31/2015
125,539,842
(2,587,907)
200,038
(30)
(2,387,899)
Beginning Net Position as restated
$
123,151,943
Statement of Revenue, Expenses and Changes in Net Position
2014
Increase (decrease) in net position
NET POSITION
Net Position - Beginning of Year
Cumulative Effect of Change in Accounting Principle (Note 2)
Net Position - Beginning of Year, as restated
Net Position - End of Year
3.
$
24,633,459
$
100,906,383
125,539,842
2015
$
$
8,451,642
125,539,842
(2,387,899)
123,151,943
131,603,585
Authorized Investments
Texas Southmost College District is authorized to invest in obligations and instruments as defined in the
Public Funds Investment Act (Sec. 2256.001 Texas Government Code). Such investments include (1)
obligations of the United States or its agencies, (2) direct obligations of the State of Texas or its agencies,
(3) obligations of political subdivisions rated not less than A by a national investment rating firm, (4)
certificates of deposit, and (5) other instruments and obligations authorized by statute.
36
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
4.
Deposits and Investments
Cash and Deposits included on Exhibit 1, Statement of Net Position, consist of the items reported below:
Cash and Deposits
August 31,
2015
Bank Deposits
Demand Deposits - Unrestricted
Demand Deposits - Restricted
$ 41,905,185
35,772,109
Cash and Cash Equivalents
Petty Cash on Hand
Reconciling Items in Transit
Total Cash and Deposits
300
(222,475)
$ 77,455,119
2014
$
$
45,285,156
22,300,000
300
(269,806)
67,315,650
Reconciliation of Deposits and Investments
Market Value
8/31/2015
Type of Security
Market Value
8/31/2014
Total Cash and Deposits
Total Investments
Total Deposits and Investments
$ 77,432,055
121,818
$ 77,553,873
$
Cash and cash equivalents
Restricted cash and cash equivalents
Endowment investments
Total Deposits and Investments
$ 41,025,151
36,406,904
121,818
$ 77,553,873
$
$
$
67,315,650
126,697
67,442,347
45,073,385
22,242,265
126,697
67,442,347
As of August 31, 2015 the District had the following investments and maturities:
Investment Type
U.S. Government Securities
U.S. Treasuries
Commercial Papers
Investment Pool
Certificate of Deposit
Common Stock
Municipal Bonds
Total Fair Value
Fair Value
121,818
$ 121,818
$
37
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Credit Risk – In accordance with state law and the District’s investment policy, investments in mutual
funds and investment pools must be rated at least AAA, commercial paper must be rated at least A-1 or
P-1, and investments in obligations from other states, municipalities, counties, etc. must be rated at least
A. The District does not place a limit on the amount it may invest in any one issuer.
Custodial Risk – For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the District will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. In accordance with state law and District policy, the
District requires monthly reports with market values of pledged securities from all financial institutions
with which the District has collateralized deposits.
At August 31, 2015, the District’s investments consisted of savings accounts which are reported as
cash and cash equivalents on the Statement of Net Assets and common stocks that were donated to the
District. The stocks are held in an endowment fund and have donor restrictions.
(The remainder of this page was intentionally left blank.)
38
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
5.
Capital Assets
Capital asset activity for the year ended August 31, 2015 was as follows:
Balance
August 31,
2014
Not Depreciated:
Land
Construction in Progress
Subtotal
$ 6,525,905
164,328
6,690,233
Increases
$
119,535
119,535
Decreases
$
-
Balance
August 31,
2015
Reclassifications
$
(164,328)
(164,328)
$
6,525,905
119,535
6,645,440
Buildings, Real Estate Improvements and
Other Capital Assets
Buildings and Building Improvements
Other Real Estate Improvements
Total Buildings and Other Real
Estate Improvements
Library Books
Software and other intangibles
Furniture, machinery, and equipment
Subtotal
Total Buildings, Real Estate Improvements
and Other Capital Assets
Accumulated Depreciation:
Buildings and Building Improvements
Other Real Estate Improvements
Total Buildings and Other Real
Estate Improvements
Library Books
Software and other intangibles
Furniture, machinery and equipment
Subtotal
Total Accumulated Depreciation
Net Capital Assets
159,901,021
9,304,980
820,156
40,783
-
164,328
-
160,885,505
9,345,763
169,206,001
860,939
-
164,328
170,231,268
8,422,239
279,090
12,152,040
20,853,369
337,957
337,957
-
190,059,370
1,198,896
-
(33,315,209)
(6,879,508)
(2,969,701)
(436,292)
-
-
(36,284,910)
(7,315,800)
(40,194,717)
(3,405,993)
-
-
(43,600,710)
(8,422,241)
(43,465)
(10,095,575)
(18,561,281)
(29,304)
(476,408)
(505,712)
-
-
(8,422,241)
(72,769)
(10,571,983)
(19,066,993)
(58,755,998)
(3,911,705)
-
-
(62,667,703)
$137,993,605
$ (2,593,274)
39
$
-
164,328
$
-
8,422,239
279,090
12,489,997
21,191,326
191,422,594
$ 135,400,331
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Capital asset activity for the year ended August 31, 2014 was as follows:
Balance
August 31,
2013
Increases
Decreases
5,758,763
5,758,763
$ 225,000.00
164,328
389,328
$ (1,550,656)
(1,550,656)
176,318,061
9,738,045
21,200,506
345,718
186,056,106
21,546,224
Library Books
Software and other intangibles
Furniture, machinery, and equipment
Subtotal
8,422,239
141,610
11,175,170
19,739,019
137,480
976,870
1,114,350
Total Buildings, Real Estate Improvements
and Other Capital Assets
205,795,125
22,660,574
(33,622,008)
(6,683,266)
(2,853,842)
(485,460)
3,160,641.00
289,218.00
-
(33,315,209)
(6,879,508)
(40,305,274)
(3,339,302)
3,449,859
-
(40,194,717)
(8,422,241)
(14,161)
(9,638,010)
(18,074,412)
(29,304)
(457,565)
(486,869)
-
(8,422,241)
(43,465)
(10,095,575)
(18,561,281)
(58,379,686)
(3,826,171)
-
(58,755,998)
Not Depreciated:
Land
Construction in Progress
Subtotal
Buildings, Real Estate Improvements and
Other Capital Assets
Buildings and Building Improvements
Other Real Estate Improvements
Total Buildings and Other Real
Estate Improvements
Accumulated Depreciation:
Buildings and Building Improvements
Other Real Estate Improvements
Total Buildings and Other Real
Estate Improvements
Library Books
Software and other intangibles
Furniture, machinery and equipment
Subtotal
Total Accumulated Depreciation
Net Capital Assets
$
$ 153,174,202
$ 19,223,731
40
Reclassifications
Balance
August 31,
2014
$
2,092,798
2,092,798
$ 6,525,905
164,328
6,690,233
(35,524,748)
(778,783.00)
(2,092,798)
-
159,901,021
9,304,980
(36,303,531)
(2,092,798)
169,206,001
-
-
(36,303,531)
(2,092,798)
3,449,859
$ (34,404,328)
$
-
8,422,239
279,090
12,152,040
20,853,369
190,059,370
$137,993,605
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
6.
Long – Term Liabilities
Bonds
General obligation bonds
Revenue bonds
Net pension liability
Total long term liabilities
Balance
August 31,
2014
Decreases
Balance
August 31,
2015
Increases
Current
Portion
$ 64,085,000
16,070,000
80,155,000
$ 33,255,000
33,255,000
$ 41,090,000
695,000
41,785,000
$ 56,250,000
15,375,000
71,625,000
$ 3,345,000
730,000
4,075,000
$ 80,155,000
2,107,582
$ 35,362,582
$ 41,785,000
2,107,582
$ 73,732,582
$ 4,075,000
Decreases
Balance
August 31,
2014
Current
Portion
$ 3,365,000
6,820,000
$ 10,185,000
$ 64,085,000
16,070,000
$ 80,155,000
$ 3,695,000
695,000
$ 4,390,000
Balance
August 31,
2013
Bonds
General obligation bonds
Revenue bonds
Total long term liabilities
7.
Increases
$ 67,450,000
22,890,000
$ 90,340,000
$
-
$
Debt Obligations
Debt service requirements (in thousands) at August 31, 2015 were as follows:
For the year
Ended
August 31,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2034
Revenue Bonds
Principal
$
$
730,000
755,000
785,000
820,000
850,000
4,880,000
6,125,000
430,000
15,375,000
Interest
706,050
676,287
644,085
610,482
575,320
2,275,491
1,027,326
19,995
$ 6,535,036
$
General Obligation Bonds
Total
$ 1,436,050
1,431,287
1,429,085
1,430,482
1,425,320
7,155,491
7,152,326
449,995
$ 21,910,036
Principal
3,345,000
3,475,000
3,630,000
3,805,000
3,985,000
23,055,000
11,640,000
3,315,000
$ 56,250,000
$
41
Interest
2,559,370
2,423,346
2,276,766
2,100,062
1,916,005
6,461,734
1,816,144
204,641
$ 19,758,068
$
Total Bonds
Total
5,904,370
5,898,346
5,906,766
5,905,062
5,901,005
29,516,734
13,456,144
3,519,641
$ 76,008,068
$
Principal
4,075,000
4,230,000
4,415,000
4,625,000
4,835,000
27,935,000
17,765,000
3,745,000
$ 71,625,000
$
Interest
3,265,420
3,099,633
2,920,851
2,710,544
2,491,325
8,737,225
2,843,470
224,636
$ 26,293,104
$
Total
7,340,420
7,329,633
7,335,851
7,335,544
7,326,325
36,672,225
20,608,470
3,969,636
$ 97,918,104
$
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
8.
Defeased Bonds Outstanding
The Student Union Building Fees Revenue Refunding Bonds, Series 2005 have been defeased by the
District during the fiscal year ended August 31, 2014. Monies were placed in an escrow fund to provide
for the future debt service payments. Accordingly, the trust account assets and defeased bonds are not
included in the District’s financial statements.
The District had the following defeased bonds outstanding at August 31, :
Year
Refunded
Bond Issue
Student Union Building Fees
Revenue Refunding Bonds
Limited Tax Bonds, Series 2005
Limited Tax Bonds, Series 2006
Maintenance Tax Notes, Series 2006
9.
Par Value Outstanding
2015
2014
2005
2014
2014
2014
$
5,750,000
1,381,000
21,695,000
3,480,000
$
5,750,000
-
Bonds Payable
General information related to bonds payable is summarized below:
Wellness Center Revenue Bonds, Series 2005




To construct, operate, maintain, renovate, or improve a wellness, recreational, and fitness
complex
Issued revenue bonds on October 1, 2005
$13,655,000, all authorized bonds have been issued
Source of revenue for debt service-Wellness Center Fees
Bonds payable are due in annual installments varying from $505,000 to $935,000 with interest at 3.5%
to 5% and the final installment due August 2030.
For the year ended August 31,
2016
2017
2018
2019
2020
2021-2025
2026-2030
Principal
$
505,000
525,000
545,000
570,000
590,000
3,380,000
4,245,000
$ 10,360,000
42
$
$
Interest
478,481
458,281
435,969
412,806
388,581
1,528,213
657,500
4,359,831
$
$
Total
983,481
983,281
980,969
982,806
978,581
4,908,213
4,902,500
14,719,831
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Combined Fee Revenue Refunding and Improvement Bonds, Series 2006




To be used to refund $4,775,000 of Revenue Bonds, Series 2002; to acquire land, construct
and renovate buildings
Issued refunding and improvement bonds on May 1, 2006
$6,590,000 all authorized bonds have been issued
Source of revenue for debt service-Tuition fees, parking fees, net proceeds of the bookstore,
interest and other investment earnings
Bonds payable are due in annual installments varying from $225,000 to $430,000 with interest at 3.60%
to 4.55% and the final installment due August 2031.
For the year ended August 31,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031
Principal
$
225,000
230,000
240,000
250,000
260,000
1,500,000
1,880,000
430,000
$
5,015,000
$
$
Interest
227,569
218,006
208,116
197,676
186,739
747,278
369,826
19,995
2,175,205
$
$
Total
452,569
448,006
448,116
447,676
446,739
2,247,278
2,249,826
449,995
7,190,205
Maintenance Tax Notes, Series 2007




To be used for the purpose of maintenance and renovation of existing facilities
Issued tax bonds June 15, 2007
$2,000,000, all authorized bonds have been issued
Source of revenue for debt service – ad valorem tax levy
Bonds payable are due in annual installments varying from $90,000 to $145,000 with interest at 4.25%
to 4.75% and the final installment due August 2027.
For the year ended August 31,
2016
2017
2018
2019
2020
2021-2025
2026-2027
Principal
$
90,000
90,000
95,000
100,000
105,000
600,000
285,000
$
1,365,000
43
$
$
Interest
60,130
56,260
52,306
48,163
43,675
140,038
13,657
414,229
$
$
Total
150,130
146,260
147,306
148,163
148,675
740,038
298,657
1,779,229
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Limited Tax Bond, Series 2007




To be used for the construction and equipment of school buildings and the purchase of
necessary sites
Issued tax bonds June 15, 2007
$14,000,000, all authorized bonds have been issued
Source of revenue for debt service-ad valorem tax levy
Bonds payable are due in annual installments varying from$175,000 to $1,160,000 with interest
at 4.25% to 4.75% and the final installment due August 2032.
For the year ended August 31,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2032
Principal
585,000
905,000
330,000
325,000
175,000
1,530,000
4,295,000
2,260,000
$ 10,405,000
$
$
$
Interest
482,711
450,676
424,206
410,288
399,444
1,831,222
1,166,238
114,500
5,279,285
$
$
Total
1,067,711
1,355,676
754,206
735,288
574,444
3,361,222
5,461,238
2,374,500
15,684,285
Maintenance Tax Notes, Series 2008




To be used for the purpose of maintenance and renovation of existing facilities
Issued tax bonds June 15, 2008
$5,000,000, all authorized bonds have been issued
Source of revenue for debt service-ad valorem tax levy
Bonds payable are due in annual installments varying from $225,000 to $375,000 with interest
at 4.10% to 4.42% and the final installment due August 2028.
For the year ended August 31,
2016
2017
2018
2019
2020
2021-2025
2026-2028
Principal
225,000
235,000
240,000
250,000
265,000
1,490,000
1,070,000
$
3,775,000
$
44
$
$
Interest
153,113
143,913
134,413
124,613
114,313
394,858
71,538
1,136,761
$
$
Total
378,113
378,913
374,413
374,613
379,313
1,884,858
1,141,538
4,911,761
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Limited Tax Bond, Series 2008




To be used for the construction and equipment of school buildings and the purchase of
necessary sites
Issued tax bonds June 15, 2008
$5,000,000, all authorized bonds have been issued
Source of revenue for debt service-ad valorem tax levy
Bonds payable are due in annual installments varying from $25,000 to $860,000 with interest at
4.25% to 4.65% and the final installment due August 2032.
For the year ended August 31,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2033
Principal
$
130,000
140,000
25,000
35,000
45,000
1,270,000
1,320,000
565,000
$
3,530,000
$
$
Interest
151,266
145,866
142,566
141,323
139,623
619,229
215,747
39,891
1,595,511
$
$
Total
281,266
285,866
167,566
176,323
184,623
1,889,229
1,535,747
604,891
5,125,511
Maintenance Tax Notes, Series 2009




To be used for the purpose of maintenance and renovation of existing facilities
Issued tax bonds June 18, 2009
$3,250,000, all authorized bonds have been issued
Source of revenue for debt service-ad valorem tax levy
Bonds payable are due in annual installments varying from $150,000 to $245,000 with interest
at 3.0% to 4.625% and the final installment due February 2029.
For the year ended August 31,
2016
2017
2018
2019
2020
2021-2025
2026-2029
Principal
150,000
155,000
160,000
170,000
175,000
930,000
705,000
$
2,445,000
$
45
$
$
Interest
101,475
93,131
93,225
83,825
76,925
262,790
82,023
793,394
$
$
Total
251,475
248,131
253,225
253,825
251,925
1,192,790
787,023
3,238,394
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Limited Tax Bond, Series 2009




To be used for the construction and equipment of school buildings and to acquire property
Issued tax bonds June 18, 2009
$4,000,000, all authorized bonds have been issued
Source of revenue for debt service-ad valorem tax levy
Bonds payable are due in annual installments varying from $70,000 to $355,000 with interest at
3% to 5% and the final installment due August 2034.
For the year ended August 31,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2034
Principal
$
335,000
355,000
70,000
70,000
75,000
335,000
405,000
490,000
$
2,135,000
$
$
Interest
82,375
72,025
65,300
62,500
59,600
248,097
181,591
50,250
821,738
$
$
Total
417,375
427,025
135,300
132,500
134,600
583,097
586,591
540,250
2,956,738
Limited Tax Refunding Bond Series 2014A




To be used for the purpose of maintenance and renovation of existing facilities
Issued limited tax refund on November, 2014
$30,150,000, all authorized notes have been issued
Source of revenue for debt service-ad valorem tax levy
Bonds payable are due in annual installments varying from $1,460,000 to $3,195,000 with interest at 2%
to 5% and the final installment due February 2026.
For the year ended August 31,
2016
2017
2018
2019
2020
2021-2025
2026
Principal
1,730,000
1,460,000
2,485,000
2,560,000
2,825,000
15,300,000
3,195,000
$ 29,555,000
$
46
$
$
Interest
1,411,250
1,347,450
1,256,125
1,130,000
995,375
2,725,500
79,875
8,945,575
$
$
Total
3,141,250
2,807,450
3,741,125
3,690,000
3,820,375
18,025,500
3,274,875
38,500,575
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Maintenance Tax Refunding Bonds, Series 2014B




To be used for the purpose of maintenance and renovation of existing facilities
Issued maintenance tax refund on November, 2014
$3,105,000, all authorized notes have been issued
Source of revenue for debt service-ad valorem tax levy
Bonds payable are due in annual installments varying from $100,000 to $365,000 with interest at 2% to
5% and the final installment due February 2026.
For the year ended August 31,
2016
2017
2018
2019
2020
2021-2025
2026
10.
Principal
$
100,000
135,000
225,000
295,000
320,000
1,600,000
365,000
$
3,040,000
$
$
Interest
117,050
114,025
108,625
99,350
87,050
240,000
5,475
771,575
$
$
Total
217,050
249,025
333,625
394,350
407,050
1,840,000
370,475
3,811,575
Employees’ Retirement Plan
The State of Texas has joint contributory retirement plans for almost all of its employees. One of the
primary plans in which the district participates is administered by the Teacher Retirement System of
Texas.
Teacher Retirement System of Texas
Plan Description
The Texas Southmost College District contributes to the Teacher Retirement System of Texas (TRS), a
cost sharing, multiple employer defined benefit pension plan. TRS administers retirement and disability
annuities, and death and survivor benefits to employees and beneficiaries of employees of the public
school systems of Texas. It operates primarily under the provision of the Texas Constitution, Article
XVI, Sec. 67, and Texas Government Code, Title 8, Subtitle C. The Texas state legislature has the
authority to establish and amend benefit provisions of the pension plan. TRS issues a publically
available financial report with required supplementary information which can be obtained from
www.trs.state.tx.us, under the TRS Publications heading.
Funding Policy
Contribution requirements are not actuarially determined but are established and amended by the Texas
state legislature. The State funding policy is as follows: (1) The state constitution requires the legislature
to establish a member contribution rate of not less than 6.0% of the member’s annual compensation and
State contribution rate of not less than 6.0% and not more than 10% of the aggregate annual
compensation of all members of the system; (2) A State statute prohibits benefit improvements or
contribution reductions if, as a result of the particular action, the time required to amortize TRS’
47
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
unfunded actuarial liabilities would be increased to a period that exceeds 31 years, or, if the amortization
period already exceeds 31 years, the period would be increased by such action. State law provides for a
member contribution rate of 6.7 for fiscal year 2015, 6.4% for fiscal years 2014 and 6.4% for fiscal year
2013, and a state contribution rate of 6.8 % for fiscal year 2015, 6.8% for fiscal year 2014, and 6.4% for
fiscal year 2013. In certain instances the reporting district is required to make all or a portion of the
state's contribution rate of 6.8% for fiscal year 2015, 6.8% for fiscal year 2014, and 6.4% for fiscal year
2013.
See Note 27 Defined Benefit Pension Plan for additional TRS plan information.
Optional Retirement Plan
Plan Description
The state has also established an optional retirement program for institutions of higher education.
Participation in the Optional Retirement Program is in lieu of participation in the Teacher Retirement
System. The optional retirement program provides for the purchase of annuity contracts and operates
under the provisions of the Texas Constitution, Article XVI, Sec. 67 and Texas Government Code, Title
8, Subtitle C.
Funding Policy
Contribution requirements are not actuarially determined but are established and amended by the Texas
State legislature. The percentages of participant salaries contributed by the state are 6.60% in fiscal year
2015, 6.60% in fiscal year 2014 and 6.00% in fiscal years 2013. Participant contribution rate for fiscal
years 2015, 2014, and 2013 was 6.65%. The District does not contribute for employees who were
participating in the optional retirement program prior to September 1, 1995. Benefits fully vest after one
year plus one day of employment. Because these are individual annuity contracts, the state has no
additional or unfunded liability for this program.
The retirement expense to the State for the District was $399,738, $523,350, and $92,708 for the fiscal
years ended August 31, 2015, 2014, and 2013, respectively. The amount represents the portion of
expended appropriations made by the State Legislature on behalf of the District.
The total payroll for all District employees was $10,109,353, $9,267,155, and $1,563,053 for fiscal years
2015, 2014, and 2013, respectively. The total payroll of employees covered by the Teacher Retirement
System was $6,341,300, $5,267,743, and $1,012,638 for the fiscal years 2015, 2014, and 2013,
respectively, and the total payroll of employees covered by the Optional Retirement Program was
$2,796,265, $2,502,178, and $464,984 for fiscal years 2015, 2014, and 2013, respectively.
11.
Deferred Compensation Program
District employees may elect to defer a portion of their earnings for income tax and investment
purposes pursuant to authority granted in Government Code 609.001. The plan is essentially an
unfunded promise to pay by the employer to each of the plan participants. As of August 31, 2015, the
District did not have any employees participating in a deferred compensation program.
48
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
12.
Compensable Absences
Full-time employees earn annual leave beginning on the first day of employment at the same rate and
with the same limit as state employees as published each biennium in the General Appropriations Act.
The District policy is that a full-time employee may carry his accrued leave forward from one fiscal
year to another fiscal year with a maximum number or hours up to 160 for all full time staff
employees. Employees with at least six months of continuous, benefits eligible, state employment
prior to separation, and terminate their employment are entitled to payment for all accumulated annual
leave up to the maximum allowed. The District recognized the accrued liability for the unpaid annual
leave for in the amounts of $407,001 and $226,603 for August 31, 2015 and 2014. Sick leave, which
is accumulated, is earned at the rate of 8 hours per month and has a limit of 720 hours. Sick leave is
accrued at the rate of 8 hours for each full month of employment for benefits-eligible employees and
shall accrue to a maximum of 90 workdays (720 hours). Upon death of an employee, one-half of the
accumulated sick leave days shall be paid to the designated beneficiary at the rate of the employee’s
salary at the time of death up to 336 hours provided that the employee was continually employed with
TSC for 6 months prior to death. Sick leave shall also be paid to an employee who terminates or
retires, provided employment by the College District has been continuous full time for at least ten
years up to 336 hours.
The accrued leave liability is shown as a current liability in the financial statements because it is
contingent on a future event that may occur in the subsequent fiscal year. When the event will actually
occur is beyond the control of the employer.
The District’s policy is to recognize the cost of sick leave when paid. The liability is not shown in the
financial statements because sick leave does not qualify as a compensated absence since it is
contingent on a future event (namely, illness) that is beyond the control of both the employer and the
employee.
Compensable absences activity for the years ended August 31, 2015 and 2014 was as follows:
Compensable absences
Compensable absences
13.
Balance
August 31,
2014
Increases
Decreases
Balance
August 31,
2015
$226,603
$370,370
$(189,972)
$ 407,001
Balance
August 31,
2013
Increases
Decreases
Balance
August 31,
2014
$107,191
$207,927
$ (88,515)
$ 226,603
Pending Lawsuits and Claims
On August 31, 2015, various lawsuits and claims involving Texas Southmost College District were
pending. While the ultimate liability with respect to litigation and other claims asserted against the
District cannot be reasonably estimated at this time. This liability, to the extent not provided for by
insurance or otherwise, is not likely to have a material effect on the District.
49
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
14.
Disaggregation of Receivables and Payables Balances
Receivables
Receivables at August 31, were as follows:
Taxes receivable
Federal receivable
Student receivable
Accounts receivable
Donations receivable
Accrued interest receivable
Other receivable - due from Cameron County
Other receivable - due from UTB
Subtotal
Allowance for doubtful accounts
Total Receivables
2015
$ 2,348,452
109,053
601,632
346,828
315,070
9,229
238,257
1,888,674
5,857,195
(974,144)
$ 4,883,051
2014
$ 2,521,170
103,871
5,014,100
191,193
315,070
10,850
104,915
2,034,190
10,295,359
(484,925)
$ 9,810,434
2015
390,082
169,453
$ 559,535
2014
$ 1,464,113
1,684,245
$ 3,148,358
Payables
Payables at August 31, were as follows:
Vendors payable
Other payables - due to UTB
Total Payables
15.
$
Contract and Grant Award
Contract and grant awards are accounted for in accordance with the requirements of the AICPA Industry
Audit Guide, Audits of Colleges and Universities. Revenues are recognized on Exhibit 2 and Schedule
A. For federal contract and grant awards, funds expended, but not collected, are reported as Federal
Receivables on Exhibit 1. Non-federal contract and grant awards for which funds are expended, but not
collected, are reported as accounts receivable on Exhibit 1. Contract and grant awards that are not yet
funded and for which the District has not yet performed services are not included in the financial
statements.
There were no contracts or grants awarded during fiscal years 2015 and 2014, for which monies have not
been received, nor expended.
16.
Self-Insured Plans
The District has various self-insured arrangements for coverage in the areas of employee health
insurance, worker’s compensation, unemployment compensation, and medical liability. Employee
health and medical liability plans are funded. Worker’s compensation and unemployment compensation
plans are on a pay-as-you-go basis, in which no assets are set aside. Accrued liabilities are generally
based on actuarial valuation and represent the present value of unpaid expected claims. Estimated future
payments for incurred claims are charged to current operations.
50
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
17.
Post Retirement Health Care and Life Insurance Benefits
In addition to providing pension benefits, the state provides certain health care and life insurance benefits
for retired employees. Almost all of the employees may become eligible for those benefits if they reach
normal retirement age while working for the state. Those and similar benefits for active employees are
provided through an insurance company whose premiums are based on benefits paid during the previous
year. Since the on-behalf payments are made directly to the retirement plan by the State, the District
would recognize the payments as revenues and expenses on its financial statements. However, at August
31, 2015 the District did not have any retired employees participating in post-retirements health care and
life insurance benefits.
18.
Ad Valorem Tax
The District’s ad valorem property tax is levied each October 1st on the assessed value listed as of the
prior January 1st for all real and business personal property located in the District.
As of August 31:
$
2015
12,493,414,367
$
2014
12,354,271,633
$
1,103,674,367
11,389,740,000
$
1,034,897,476
11,319,374,157
$
Current
Operations
0.350000
$
2015
Debt
Service
0.500000
$
Total
0.850000
Authorized tax rate per $100 valuation
Assessed tax rate per $100 valuation
$
0.100972
$
0.063122
$
0.164094
Authorized tax rate per $100 valuation
$
Current
Operations
0.350000
$
2014
Debt
Service
0.500000
$
Total
0.850000
Assessed tax rate per $100 valuation
$
0.101596
$
0.061339
$
0.162935
Assessed valuation of the District
Less:
Exemptions
Net assessed valuation of the District
Section 130.122 of the Texas Education Code, as amended, limits a junior college district’s tax rate to
$1.00 per $100 taxable assessed valuation (of which a maximum of $0.50 may be pledged for bond debt
service), and the District is further restricted by local referendum which limits the tax rate for local
maintenance to $0.35.
Taxes levied for the years ended August 31, 2015 and 2014 amounted to $18,373,386 and $18,122,935,
respectively including any penalty and interest assessed. Taxes are due on receipt of the tax bill and are
delinquent if not paid before February 1 of the year following the year in which imposed.
51
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Taxes Collected
Current taxes collected
Delinquent taxes collected
Penalties and interest collected
Less discounts and commissions
Total Collections
Taxes Collected
Current taxes collected
Delinquent taxes collected
Penalties and interest collected
Less discounts and commissions
Total Collections
Current
Operations
2015
Debt
Service
Total
$ 10,698,292
595,228
371,286
(341,504)
$ 11,323,301
$ 6,791,853
341,574
200,353
(212,954)
$ 7,120,825
$ 17,490,144
936,801
571,639
(554,458)
$ 18,444,126
Current
Operations
2014
Debt
Service
Total
$ 10,637,128
560,309
367,310
(280,668)
$ 11,284,079
$ 6,417,522
342,682
187,067
(167,432)
$ 6,779,839
$ 17,054,650
902,991
554,377
(448,100)
$ 18,063,918
Tax collections for the years ended August 31, 2015 and 2014 were 94.87% and 94.89%, respectively of
the current tax levy. Allowance for uncollectible taxes are based upon historical experience in collecting
property taxes. The use of tax proceeds is restricted for the use of maintenance and/or general obligation
debt service.
19.
Income Taxes
The District is exempt from income taxes under internal Revenue Code Section 115, Income of States,
Municipalities, Etc. although unrelated business income may be subject to income tax under internal
Revenue code Section 511 (a)(2)(B), Imposition of Tax on Unrelated Business Income of Charitable,
Etc. Organizations. The District had no unrelated business income tax liability for the years ended
August 31, 2015, and 2014.
20.
Risk Management
The District is exposed to various risks of loss related to torts, theft, damage or destruction of purchased
assets. The District carries commercial insurance to cover general liabilities. There were no significant
reductions in coverage in the past fiscal year and there were no settlements exceeding insurance coverage
for each of the past three years.
52
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
21.
Restricted Assets
As of August 31, 2015 and 2014, the balances of the restricted assets are as follows:
2015
2014
Endowment
$
835,435
$
160,543
Scholarships
2,141,482
2,226,022
Federal awards
18,801,518
6,396,895
Restricted contributions - arts center
791,663
790,832
Restricted - parking
1,031,972
1,030,888
Restricted - insurance
1,135,579
1,134,386
General obligation - debt service
3,131,529
2,373,481
Revenue bond - debt service
5,180,316
5,326,312
Revenue bond - construction account
3,357,411
2,802,906
$ 36,406,904
$ 22,242,265
22.
Grants and Contract Contingencies
The District participates in various grant programs that are governed by various rules and regulations of
the grantor agencies. All grants and contracts of the District are passed through to the University of
Texas – Rio Grande Valley in accordance with the partnership agreement between the two schools.
UTRGV meets all the characteristics of a subrecipient as outlined in Circular A-133 however; it is not
being treated as a subrecipient because the partnership agreement is intended to allow UTRGV to act for
and on behalf of the District. Costs charged to the respective grant programs are subject to audit and
adjustment by the grantor agencies; therefore, to the extent UTRGV has not complied with the rules and
regulations governing the grants, the District would be held accountable and any refund of money
received may be required and the collectability of any related receivable may be impaired. In the
opinion of the District’s management, there are no significant contingent liabilities relating to
compliance with the rules and regulations governing the respective grants; therefore, no provision has
been recorded in the accompanying financial statements for such contingencies.
23.
Related Parties (Not a component unit)
The Texas Southmost College Foundation, Inc. is a nonprofit organization with the purpose of
supporting the educational and other activities of the District. Texas Southmost College District does not
appoint a voting majority nor does it fund or is obligated to pay debt related to this association. The
District does not have the ability to significantly influence the policies of this Foundation. The
Foundation solicits donations and acts as coordinator of gifts made by other parties. It remitted
unrestricted gifts of $0 and $61,000, to UTRGV during the years ended August 31, 2015 and 2014,
respectively. The District furnished certain services, such as office space, utilities and some staff
assistance, at no cost to the Foundation.
24.
Excess Interest and Rebatable Arbitrage
The Tax Reform Act of 1986 established arbitrage regulations that generally limit the rate or return on
investment earnings of unexpended tax-exempt debt proceeds. With certain adjustments, the investment
yield is limited to the interest rate on the debt itself. Federal tax code requirements now compel state and
local governments to rebate defined arbitrage earnings of tax-exempt debt to the federal government
every five years for as long as the bonds are outstanding. As of the audit report date, the District had
received a preliminary calculation of the arbitrage amount of $10,795 and $12,131, which are reported as
part of accrued expenses on these financial statements for the fiscal years ended 2015 and 2014,
respectively.
53
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
25.
Post Employment Benefits Other than Pensions
The District does not participate in any post-employment benefits.
26.
Contingencies
Texas Constitution article 16, section 67(b)(3) provides that the State of Texas must contribute “not less
than six percent nor more than ten percent of the aggregate compensation paid to individuals
participating in the system”, referring to the State’s Teacher Retirement System (TRS) including the
related faculty Optional Retirement Program (ORP).
During the 2011 legislative session, the Texas legislature appropriated retirement funds for various types
of educational institutions other than community and junior colleges in satisfaction of this requirement,
but the community college appropriations restricted the State’s contribution to TRS/ORP on behalf of
community colleges to only six percent of each district’s unrestricted General Revenue appropriation for
each year of the biennium state budget.
There is no pending litigation concerning this issue to construe the constitutional funding requirements;
or to hold that the State biennium appropriations satisfy those requirements; or to attempt to collect any
shortfall contributions from any community college district.
27.
Defined Benefit Pension Plan
Plan Description
The District participates in a cost-sharing multiple-employer defined benefit pension that has a special
funding situation. The plan is administered by the Teacher Retirement System of Texas (TRS). TRS’s
defined benefit pension plan is established and administered in accordance with the Texas Constitution,
Article XVI, Section 67 and Texas Government Code, Title 8, Subtitle C. The pension trust fund is a
qualified pension trust under Section 401(a) of the Internal Revenue Code. The Texas Legislature
establishes benefits and contribution rates within the guidelines of the Texas Constitution. The pension’s
Board of Trustees does not have the authority to establish or amend benefit terms.
All employees of public, state-supported educational institutions in Texas who are employed for one-half
or more of the standard work load and who are not exempted from membership under Texas
Government Code, Title 8, Section 822.002 are covered by the system.
Pension Plan Fiduciary Net Position
Detailed information about the Teacher Retirement System’s fiduciary net position is available in a
separately-issued Comprehensive Annual Financial Report that includes financial statements and
required supplementary information. That report may be obtained on the Internet at
http://www.trs.state.tx.us/about/documents/cafr.pdf#CAFR; by writing to TRS at 1000 Red River Street,
Austin, TX, 78701-2698; or by calling (512) 542-6592.
54
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Benefits Provided
TRS provides service and disability retirement, as well as death and survivor benefits, to eligible
employees (and their beneficiaries) of public and higher education in Texas. The pension formula is
calculated using 2.3 percent (multiplier) times the average of the five highest annual creditable salaries
times years of credited service to arrive at the annual standard annuity except for members who are
grandfathered, the three highest annual salaries are used. The normal service retirement is at age 65 with
5 years of credited service or when the sum of the member’s age and years of credited service equals 80
or more years. Early retirement is at age 55 with 5 years of service credit or earlier than 55 with 30 years
of service credit. There are additional provisions for early retirement if the sum of the member’s age and
years of service credit total at least 80, but the member is less than age 60 or 62 depending on date of
employment, or if the member was grandfathered in under a previous rule. There are no automatic postemployment benefit changes; including automatic COLAs. Ad hoc post-employment benefit changes,
including ad hoc COLAs can be granted by the Texas Legislature as noted in the Plan description in (A)
above.
Contributions
Contribution requirements are established or amended pursuant to Article 16, section 67 of the Texas
Constitution which requires the Texas legislature to establish a member contribution rate of not less
than 6% of the member’s annual compensation and a state contribution rate of not less than 6% and
not more than 10% of the aggregate annual compensation paid to members of the system during the
fiscal year. Texas Government Code section 821.006 prohibits benefit improvements, if as a result of
the particular action, the time required to amortize TRS’ unfunded actuarial liabilities would be
increased to a period that exceeds 31 years, or, if the amortization period already exceeds 31 years, the
period would be increased by such action.
Employee contribution rates are set in state statute, Texas Government Code 825.402. Senate Bill
1458 of the 83rd Texas Legislature amended Texas Government Code 825.402 for member
contributions and established employee contribution rates for fiscal years 2014 thru 2017. The 83rd
Texas Legislature, General Appropriations Act (GAA) established the employer contribution rates for
fiscal years 2015 and 2014.
Contribution Rates
2015
6.7%
6.8%
6.8%
Member
Non-Employer Contributing Entity (State)
Employers
FY 2014 District or College Contributions
FY 2014 State of Texas On-behalf Contributions
$
$
2014
6.4%
6.8%
6.8%
200,038
164,160
As the non-employer contributing entity for public education and junior colleges, the State of Texas
contributes to the retirement system an amount equal to the current employer contribution rate times
the aggregate annual compensation of all participating members of the pension trust fund during that
fiscal year reduced by the amounts described below which are paid by the employers.
Employers (public school, junior college, other entities or the State of Texas as the employer for senior
universities and medical schools) are required to pay the employer contribution rate in the following
instances:
55
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014

On the portion of the member's salary that exceeds the statutory minimum for members
entitled to the statutory minimum under Section 21.402 of the Texas Education Code.

During a new member’s first 90 days of employment.

When any part or all of an employee’s salary is paid by federal funding sources, a privately
sponsored source, from non-educational and general, or local funds.

When the employing district is a public junior college or junior college district, the
employer shall contribute to the retirement system an amount equal to 50% of the state
contribution rate for certain instructional or administrative employees; and 100% of the
state contribution rate for all other employees.
In addition to the employer contributions listed above, when employing a retiree of the Teacher
Retirement System the employer shall pay both the member contribution and the state contribution as
an employment after retirement surcharge.
Actuarial Assumptions
The total pension liability in the August 31, 2015 actual valuation was determined using the following
assumptions:
Valuation Date:
Actuarial cost Method:
August 31, 2015
Individual Entry Age Normal
Amortization Method:
Remaining Amortization Period:
Asset Valuation Method:
Discount Rate:
Long-term expected Investment Rate of Return*:
Salary Increases*:
Weight-Average at Valuation Date:
Payroll Growth Rate:
Level Percentage of Payroll, Open
30 years
5 years Market Value
8.00%
8.00%
4.25% to 7.25%
5.55%
3.50%
* Includes Inflation of 3%
The actuarial methods and assumptions are primarily based on a study of actual experience for the four
year period ending August 31, 2010 and adopted on April 8, 2011. With the exception of the postretirement mortality rates for healthy lives and a minor change to the expected retirement age for
inactive vested members stemming from the actuarial audit performed in the Summer of 2014, the
assumptions and methods are the same as used in the prior valuation. When the mortality assumptions
were adopted in 2011 they contained a significant margin for possible future mortality improvement.
As of the date of the valuation there has been a significant erosion of this margin to the point that the
margin has been eliminated. Therefore, the post-retirement mortality rates for current and future
retirees was decreased to add additional margin for future improvement in mortality in accordance
with the Actuarial Standards of Practice No. 35.
56
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Discount Rate
The discount rate used to measure the total pension liability was 8.0%. There was no change in the
discount rate since the previous year. The projection of cash flows used to determine the discount rate
assumed that contributions from plan members and those of the contributing employers and the nonemployer contributing entity are made at the statutorily required rates. Based on those assumptions,
the pension plan’s fiduciary net position was projected to be available to make all future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability. The long-term rate of return on pension plan investments is 8%. The long-term expected
rate of return on pension plan investments was determined using a building-block method in which
best-estimates ranges of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of geometric real rates of return for each major asset class included in the Systems
target asset allocation as of August 31, 2014, as amended October 1, 2014, are summarized below:
Asset Class
Target
Allocation
Real Return
Geometric
Basis
Long-Term
Expected
Portfolio
Real Rate of
Return
18.0%
13.0%
9.0%
4.0%
13.0%
7.0%
7.3%
8.1%
5.4%
9.2%
1.4%
1.1%
0.9%
0.2%
1.4%
11.0%
0.0%
4.0%
1.0%
2.9%
4.0%
5.2%
2.0%
0.3%
0.0%
0.2%
0.0%
3.0%
16.0%
3.0%
0.0%
3.1%
7.3%
8.8%
3.4%
0.0%
1.5%
0.3%
0.0%
5.0%
100.0%
8.9%
0.4%
1.0%
8.7%
Global Equity
U.S.
Non-U.S. Developed
Emerging Markets
Directional Hedge Funds
Private Equity
State Value
U.S. Treasuries
Absolute Return
Stable Value Hedge Funds
Cash
Real Return
Global Inflation Linked Bonds
Real Assets
Energy and Natural Resources
Commodities
Risk Parity
Risk Parity
Alpha
Total
57
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
Discount Rate Sensitivity Analysis
The following schedule shows the impact of the Net Pension Liability if the discount rate used was 1%
less than and 1% greater than the discount rate that was used (8%) in measuring the 2014 Net Pension
Liability.
Entity's proportionate share of
the net pension liability:
1% Decrease in
Discount Rate
(7.0%)
Discount Rate
(8.0%)
1% Increase in
Discount Rate
(9.0%)
$3,766,122
$2,107,582
$867,304
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At August 31, 2015, the employer reported a liability of $2,107,582 for its proportionate share of the
TRS’s net pension liability. This liability reflects a reduction for State pension support provided to the
employer. The amount recognized by the employer as its proportionate share of the net pension
liability, the related State support, and the total portion of the net pension liability that was associated
with the employer were as follows:
Employer's Proportionate share of the collective net pension liability
State's proportionate share that is associated with employer
Total
$2,107,582
1,733,259
$3,840,841
The net pension liability was measured as of August 31, 2014 and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The
employer’s proportion of the net pension liability was based on the employer’s contributions to the
pension plan relative to the contributions of all employers to the plan for the period September 1, 2013
thru August 31, 2014.
There were no changes of assumptions or other inputs that affected measurement of the total pension
liability during the measurement period.
There were no changes of benefit terms that affected measurement of the total pension liability during
the measurement period.
There was a change in employer contribution requirements that occurred after the measurement date of
the net pension liability and the employer’s reporting date. A 1.5% contribution for employers not
paying Old Age Survivor and Disability Insurance (OASDI) on certain employees went into law
effective 09/01/2014. The amount of the expected resultant change in the employer’s proportion
cannot be determined at this time.
For the year ended August 31, 2015, the employer recognized pension expense of $160,237 and
revenue of $160,237 for support provided by the State.
58
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to the Financial Statements
August 31, 2015 and 2014
At August 31, 2015, the employer reported its proportionate share of the TRS’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Differences between expected and actual economic experiences
Changes in actuarial assumptions
Difference between projected and actual investment earnings
Changes in proportion and difference between the employer's
contributions and the proportionate share of contributions
Contributions paid to TRS subsequent to the measurement date
Total
Deferred
Outflows of
Resources
$
32,594
136,995
-
Deferred
Inflows of
Resources
$
644,163
169,589
552
644,715
$
$
The net amounts of the employer’s balances of deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Year ended
August 31:
2016
2017
2018
2019
2020
Thereafter
Pension Expense
Amount
$
(132,524)
(132,524)
(132,524)
(132,524)
28,517
26,543
(The remainder of this page was intentionally left blank.)
59
REQUIRED
SUPPLEMENTARY INFORMATION
60
RSI 1
TEXAS SOUTHMOST COLLEGE DISTRICT
Schedule of Texas Southmost College's Share of Net Pension Liability
For the Year Ended August 31, 2015
Fiscal year ending August 31 *
Total TRS' pension liability
TRS' net position
2015**
$ 159,496,075,886
(132,779,243,085)
TRS' net pension liability
$
TRS net position as percentage of total pension liability
26,716,832,801
83.25%
Texas Southmost College proportionate share of collective net pension liability (%)
0.0078902%
Texas Southmost College proportionate share of collective net pension liability ($)
Portion of NECE's total proportionate share of NPL associated with Texas Southmost College
$
2,107,582
1,733,259
Total
$
3,840,841
Texas Southmost College covered payroll amount
Ratio of: ER proportionate share of collective NPL / ER's covered payroll amount
$
6,341,300
33.24%
* The amounts presented above are as of the measurement date of the collective net pension liability.
** Schedule is intended to show information for 10 years. Additional years will be displayed as the
become available.
61
RSI 2
TEXAS SOUTHMOST COLLEGE DISTRICT
Schedule of Texas Southmost College's Contributions
For the Year Ended August 31, 2015
Fiscal year ending August 31, *
Legally required contributions
Actual contributions
$
Contributions deficiency (excess)
2015**
232,578
(232,578)
-
Texas Southmost College covered employee payroll amount
Ratio of: Actual contributions / ER covered payroll amount
$
* The amounts presented above are as of the Texas Southmost College most recent fiscal
year-end.
** Schedule is intended to show information for 10 years. Additional years will be displayed
as they become available.
62
6,341,300
3.6677%
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to Required Supplementary Information
For the Year Ended August 31, 2015
Change of Benefit Terms include:
A 2.0% COLA, effective September 1, 2015.
Change of Assumptions:
There were no changes of assumptions for the year ended August 31, 2015.
63
SUPPLEMENTARY SECTION
64
SCHEDULE A
TEXAS SOUTHMOST COLLEGE DISTRICT
Schedule of Operating Revenues
For the Year Ended August 31, 2015
(With Memorandum Totals For The Year Ended August 31, 2014)
Restricted
Unrestricted
Tuition:
State funded credit courses:
In-district resident tuition
Out-of-district resident tuition
Non-resident tuition
TPEG - credit (set aside)*
State funded continuing education
TPEG - non-credit (set aside)*
Non-state funded educational programs
Total Tuition
$
$
3,947,393
Fees:
Distance learning fee
Installment plan fees
Non-instructional contract training fees
Prior year tuition and fees
Total Fees
5,449,642
5,449,642
Scholarship Allowances and Discounts:
Remissions and exemptions - state
Remissions and exemptions - local
Reduced tuition pilot
Other federal grants
TPEG awards
UTB Commitments
Other state grants
Rising star program
Other local grants
Total Scholarship Allowances
Additional Operating Revenues:
Federal grants and contracts
State grants and contracts
Local grants and contracts
Non-governmental grants and contracts
Sales and services of educational activities
General operating revenues
Total Additional Operating Revenues
Auxiliary Enterprises:
Bookstore
Less discounts
Food service
Center for educational telecommunications
Business incubation center
Student programs
Net Bookstore
Facilities rentals
Total Net Auxiliary Enterprises
$
-
$ 3,071,276
541,784
122,240
212,093
-
3,947,393
1,959,961
1,959,961
(841,401)
(236,514)
(1,077,915)
Total Net Tuition and Fees
Total Operating Revenues
3,071,276
541,784
122,240
212,093
Total
Educational
Activities
-
7,409,603
7,409,603
(841,401)
(236,514)
(1,077,915)
8,319,120
1,959,961
10,279,081
291,668
291,668
374,544
1,420,925
19,902,764
21,698,233
374,544
1,420,925
19,902,764
291,668
21,989,901
-
-
-
-
-
-
8,610,788
$ 23,658,194
$ 32,268,982
Auxiliary
Enterprises
$
1,771,277
1,771,277
1,771,277
-
2015
Total
$
2014
Total
3,071,276
541,784
122,240
212,093
3,016,510
579,897
122,515
237,339
3,947,393
3,956,261
9,180,880
9,180,880
8,605,527
8,605,527
(841,401)
(236,514)
(1,077,915)
(881,794)
(68,116)
(949,910)
12,050,358
11,611,878
374,544
1,420,925
19,902,764
291,668
21,989,901
232,385
1,664,776
16,661,900
305,516
18,864,577
-
-
887,839
887,839
887,839
887,839
887,839
887,839
1,000,418
1,000,418
1,000,418
$ 2,659,116
$ 34,928,098
(Exhibit 2)
$ 31,476,873
(Exhibit 2)
* In accordance with Education Code 56.003, $212,093 and $237,339 of tuition was set aside for Texas Public Education Grants (TPEG)
for the years ended August 31, 2015 and 2014, respectively
65
$
SCHEDULE B
TEXAS SOUTHMOST COLLEGE DISTRICT
Schedule of Operating Expenses by Object
For the Year Ended August 31, 2015
(With Memorandum Totals For The Year Ended August 31, 2014)
Operating Expenses
Benefits
State
Local
Benefits
Benefits
Salaries
and Wages
Unrestricted - Educational Activities
Instruction
Public service
Academic support
Student services
Institutional support
Operation and maintenance of plant
Scholarships and fellowships
Contract services - UTB
Total Unrestricted Educational Activities
Restricted - Educational Activities
Instruction
Public service
Academic support
Student services
Institutional support
Operation and maintenance of plant
Scholarships and fellowships
Total Restricted Educational Activities
Total Educational Activities
Auxiliary Enterprises
Depreciation Expense
Buildings and other real estate improvements
Equipment and furniture
Total Operating Expenses
$ 4,776,852
188,505
1,372,360
1,799,415
1,290,005
682,216
10,109,353
$
-
-
-
$ 777,411
23,723
156,068
235,198
393,403
101,705
1,687,508
-
$
Other
Expenses
2015
Total
2014
Total
518,914
66,165
212,773
536,770
10,215,251
3,988,417
16,784,115
32,322,405
$ 6,073,177
278,393
1,741,201
2,571,383
11,898,659
4,772,338
16,784,115
44,119,266
$ 3,588,434
162,099
3,155,220
3,258,324
10,637,044
4,802,797
14,215,285
39,819,203
-
-
-
10,109,353
-
1,687,508
32,322,405
44,119,266
39,819,203
431,305
-
70,304
526,223
1,027,832
1,142,881
-
-
3,405,993
505,712
3,405,993
505,712
3,339,302
486,869
$ 36,760,333
$ 49,058,803
(Exhibit 2)
$ 44,788,255
(Exhibit 2)
$ 10,540,658
$
-
66
$ 1,757,812
SCHEDULE C
TEXAS SOUTHMOST COLLEGE DISTRICT
Schedule of Non-Operating Revenues and Expenses
For the Year Ended August 31, 2015
(With Memorandum Totals For The Year Ended August 31, 2014)
Unrestricted
Non-Operating Revenues
State Appropriations:
Education and general state support
State group insurance
State retirement matching
Professional nursing shortage reduction
Total State allocations
Ad valorem taxes:
Maintenance ad valorem taxes
Debt service ad valorem taxes
Gifts
Investment income
Gain (Loss) on sale of investments
Title IV federal grants
Other non-operating revenue
Total Non-Operating Revenues
Non-Operating Expenses
Interest on capital related debt
(Gain) Loss on sale of capital assets
Allowance for uncollectible expense
Other non-operating expenses
Total Non-Operating Expenses
Net Non-Operating Revenues
$
6,846,957
6,846,957
Restricted
$
-
Auxiliary
Enterprises
$
-
11,323,301
7,120,825
39,388
742,363
19,225,877
36,168
-
36,168
2,884,008
231,726
410,921
3,526,655
-
$ 22,546,179
$
67
36,168
$
2015
Total
$
6,846,957
6,846,957
2014
Total
$
6,954,881
6,954,881
-
11,323,301
7,120,825
75,556
742,363
26,109,002
11,284,079
6,777,839
138,139
280,664
25,435,602
-
2,884,008
231,726
410,921
3,526,655
3,736,908
(16,671,641)
415,211
10,283
(12,509,239)
-
$ 22,582,347
(Exhibit 2)
$ 37,944,841
(Exhibit 2)
SCHEDULE D
TEXAS SOUTHMOST COLLEGE DISTRICT
Schedule of Net Position by Source and Availability
For the Year Ended August 31
31, 2015
(With Memorandum Totals for the Year Ended August 31, 2014)
Detail by Source
Restricted
Unrestricted
Current:
Unrestricted
Restricted
Scholarships
Institutional scholarships
Grants
Auxiliary enterprises
Loan
Endowment:
Quasi:
Restricted
Plant:
Unexpended
Renewals
Debt Service
Investment in Plant
Total Net Position, August 31, 2015
$
43,796,668
Expendable
$
$
-
$
-
Current Year
Total
$
43,796,668
2,595,739
-
-
-
2,595,739
251,878
2,246,734
36,954
960,288
-
-
960,288
46,332,234
13,042,559
1,481,851
5,414,996
23,495,433
-
61,775,918
61,775,918
Total Net Position, August 31, 2014
40,879,272
28,608,777
-
56,051,793
Adjustment to net position
(1,946,165)
Net Increase (Decrease) in Net Position
251,878
2,246,734
36,954
-
Capital Assets
Net of Depreciation
Non-Expendable and Related Debt
-
$
7,399,127
(441,734)
$
(4,671,610)
(Continued on page 69.)
68
$
-
$
5,724,125
13,042,559
1,481,851
5,414,996
61,775,918
131,603,585
(E hibi 1)
(Exhibit
125,539,842
(Exhibit 1)
(2,387,899)
(Exhibit 2)
$
8,451,642
(Exhibit 2)
Schedule of Net Position by Source and Availability
For the Year Ended August 31, 2015 - CONTINUED
(With Memorandum Totals for the Year Ended August 31, 2014)
Available for Current Operations
Yes
Current:
Unrestricted
B d ddesignated
Board
i t d
Restricted
Scholarships
Institutional scholarships
Grants
Auxiliary enterprises
Loan
Endowment:
Quasi:
Q
Unrestricted
Restricted
Endowment:
True
Term (per instructions at maturity)
$
Prior Year
Total
No
43,796,668
-
$
2,246,734
36,954
-
-
960,288
288,573
Yes
$
No
39,099,891
-
-
-
-
-
-
-
Total Net Position, August 31, 2014
40,627,486
84,912,356
5,452,870
$
610,873
(Continued from page 68.)
69
-
40,627,486
14,377,301
1,480,771
9,869,662
56,051,793
84,912,356
40,627,486
84,912,356
$
2,420,333
251,786
172,137
288,573
-
-
-
14,377,301
1,480,771
9,869,662
56,051,793
125,539,842
(Exhibit 1)
125,539,842
(Exhibit 2)
(Exhibit 2)
$
(Exhibit 2)
$
1,490,679
36,916
-
13,042,559
1,481,851
5,414,996
61,775,918
85,523,229
$
39,099,891
2,420,333
251,786
172,137
1,490,679
36,916
46,080,356
Net Increase (Decrease) in Net Position
$
2,595,739
251,878
-
Life income contracts
Annuities
Plant:
Unexpended
Renewals
Debt Service
Investment in Plant
Total Net Position, August 31, 2015
Adjustment to net position
Available for Current Operations
-
$
-
STATISTICAL SECTION
This part of the Texas Southmost College District’s comprehensive annual financial report
represents detailed information as a context for understanding what the information in the
financial statements, note disclosures, and required supplementary information says about the
government’s overall financial health.
Contents
Page
Financial Trends
71
These schedules contain trend information to help the reader understand how
the District’s financial performance and well-being have changed over time.
Revenue Capacity
72
These schedules contain information to help the reader assess the District’s
most significant local revenue source, the property tax.
Debt Capacity
79
These schedules contain trend information to help the reader assess the
affordability of the District’s current levels of outstanding debt and the
District’s ability to issue additional debt in the future.
Demographic and Economic Information
82
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the District’s financial activities take
place.
Operating Information
84
These schedules contain service and infrastructure data to help the reader
understand how the information in the District’s financial report relates to the
services the District provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
70
Texas Southmost College District
Statistical Supplement 1
Net Position by Component
Fiscal Years 2006 to 2015
(unaudited)
For the Fiscal Year Ended August 31,
2015
Invested in capital assets, net of related debt
Restricted - expendable
Unrestricted
Total primary government net position $
$61,775,918
23,495,433
46,332,234
131,603,585
2014
$
$56,051,793
28,860,563
40,627,486
125,539,842
2013
$
$62,543,113
24,485,445
15,493,552
102,522,110
2012
$
$61,210,428
23,518,588
12,169,263
96,898,279
71
2011
2010
$61,297,681
21,094,114
7,864,865
$ 90,256,660
$61,085,182
17,373,637
7,351,688
$ 85,810,507
2009
$
$56,521,297
18,296,679
7,320,953
82,138,929
2008
$
$50,940,113
15,823,635
5,804,727
72,568,475
2007
$
$49,258,626
12,132,932
2,095,813
63,487,371
2006
$
$43,849,871
8,913,884
3,162,896
55,926,651
Texas Southmost College District
Statistical Supplement 2
Revenues by Source
Fiscal Years 2006 to 2015
(unaudited)
For the Year Ended August 31,
2015
Tuition and Fees (Net of Discounts)
Governmental Grants and Contracts
Federal Grants and Contracts
State Grants and Contracts
Local Grants and Contracts
Non-Governmental Grants and Contracts
Auxiliary enterprises
Other Operating Revenues
Total Operating Revenues
State Appropriations
Ad Valorem Taxes
Investment income
Other non-operating revenues
Total Non-Operating Revenues
Total Revenues
$
$12,050,358
374,544
1,420,925
19,902,764
0
887,839
291,668
34,928,098
6,846,957
18,444,126
75,556
742,363
26,109,002
61,037,100
2014
2013
2012
2011
$11,611,878
$17,786,278
$32,695,242
$35,737,651
232,385
1,664,776
16,661,900
0
1,000,418
305,516
31,476,873
6,954,881
18,061,918
138,139
280,664
25,435,602
$ 56,912,475
456,394
3,273,839
598,780
0
515,622
215,982
22,846,895
11,157,850
17,727,167
114,246
24,291
29,023,554
$ 51,870,449
1,248,768
2,927,641
552,828
0
530,769
10,802
37,966,050
11,320,102
17,459,754
104,516
329,965
29,214,337
$ 67,180,387
1,438,868
3,816,154
523,780
0
633,527
371,205
42,521,185
12,245,588
17,049,071
55,346
12,780
29,362,785
$ 71,883,970
2014
2013
2012
2011
2010
2009
$31,738,816
$
875,766
4,648,058
442,644
0
492,167
307,138
38,504,589
13,770,382
16,787,201
192,016
482,710
31,232,309
69,736,898
2008
$26,843,900
$
1,970,939
4,430,696
439,772
0
445,716
419,588
34,550,611
13,983,572
16,480,318
918,907
1,646,207
33,029,004
67,579,615
$25,917,215
$
787,249
3,371,048
363,885
0
390,990
240,523
31,070,910
14,153,928
15,318,499
3,172,984
63,581
32,708,992
63,779,902
2007
2006
$26,948,039
774,059
3,099,683
305,541
0
347,361
45,750
31,520,433
12,628,144
13,767,626
3,128,813
113,496
29,638,079
$ 61,158,512
$23,754,562
$
916,007
3,073,616
391,678
0
345,640
45,550
28,527,053
12,270,602
12,234,865
2,093,733
515,930
27,115,130
55,642,183
For the Year Ended August 31,
2015
Tuition and fees (net of discounts)
Governmental grants and contracts
Federal grants and contracts
State grants and contracts
Local grants and contracts
Non-governmental grants and contracts
Auxiliary enterprises
Other operating revenues
Total Operating Revenues
State appropriations
Ad valorem taxes
Investment income
Other non-operating revenues
Total Non-Operating Revenues
Total Revenues
2010
2009
2008
2007
2006
19.74%
20.40%
34.29%
48.67%
49.72%
45.51%
39.72%
40.64%
44.06%
42.69%
0.61%
2.33%
32.61%
0.00%
1.45%
0.48%
57.22%
11.22%
30.22%
0.12%
1.22%
42.78%
100.00%
0.41%
2.93%
29.28%
0.00%
1.76%
0.54%
55.31%
12.22%
31.74%
0.24%
0.49%
44.69%
100.00%
0.88%
6.31%
1.15%
0.00%
0.99%
0.42%
44.05%
21.51%
34.18%
0.22%
0.05%
55.95%
100.00%
1.86%
4.36%
0.82%
0.00%
0.79%
0.02%
56.51%
16.85%
25.99%
0.16%
0.49%
43.49%
100.00%
2.00%
5.31%
0.73%
0.00%
0.88%
0.52%
59.15%
17.04%
23.72%
0.08%
0.02%
40.85%
100.00%
1.26%
6.67%
0.63%
0.00%
0.71%
0.44%
55.21%
19.75%
24.07%
0.28%
0.69%
44.79%
100.00%
2.92%
6.56%
0.65%
0.00%
0.66%
0.62%
51.13%
20.69%
24.39%
1.36%
2.44%
48.87%
100.00%
1.23%
5.29%
0.57%
0.00%
0.61%
0.38%
48.72%
22.19%
24.02%
4.97%
0.10%
51.28%
100.00%
1.27%
5.07%
0.50%
0.00%
0.57%
0.07%
51.54%
20.65%
22.51%
5.12%
0.19%
48.46%
100.00%
1.65%
5.52%
0.70%
0.00%
0.62%
0.08%
51.27%
22.05%
21.99%
3.76%
0.93%
48.73%
100.00%
Note:
As a result of our partnership agreement with The University of Texas at Brownsville, the reporting for fiscal years 2006-2012 were done at the partnership level
72
Texas Southmost College District
Statistical Supplement 3
Program Expenses by Function
Fiscal Years 2006 to 2015
(unaudited)
For the Year Ended August 31,
Instruction
Research
Public service
Academic support
Student services
Institutional support
Operation and maintenance of plant
Scholarships and fellowships
Auxiliary enterprises
Depreciation
Contracted services with UTB
Total Operating Expenses
Interest on capital related debt
Other non-operating expenses
Total Non-Operating Expenses
Total Expenses
2015
2014
$6,073,177
278,393
1,741,201
2,571,383
11,898,659
4,772,338
16,784,115
1,027,832
3,911,705
49,058,803
2,884,008
642,647
3,526,655
$ 52,585,458
$3,588,434
162,099
3,155,220
3,258,324
10,637,044
4,802,797
14,215,285
1,142,881
3,826,171
44,788,255
3,736,908
(16,246,147)
(12,509,239)
$ 32,279,016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
415,103
3,509,671
29,992,540
41,715,146
4,166,002
365,470
4,531,472
$ 46,246,618
$0
4,724,266
59,282
415,756
3,449,395
47,403,368
56,052,067
4,316,289
170,412
4,486,701
$ 60,538,768
$0
3,174,850
1,212,864
977,643
3,437,546
53,195,529
61,998,432
4,447,165
992,220
5,439,385
$ 67,437,817
$0
2,567,414
2,873,577
830,403
3,411,362
51,661,026
61,343,782
4,582,811
138,726
4,721,537
$ 66,065,319
$0
2,325,216
1,349,966
928,790
2,065,902
46,763,146
53,433,020
4,432,353
143,789
4,576,142
$ 58,009,162
$0
2,581,761
892,107
683,044
2,069,769
44,254,372
50,481,053
4,115,261
102,484
4,217,745
$ 54,698,798
$0
2,066,398
1,225,773
614,980
2,221,288
43,854,678
49,983,117
3,506,956
107,719
3,614,675
$ 53,597,792
$0
1,742,062
1,296,191
686,733
2,181,910
40,662,560
46,569,456
2,415,978
54,050
2,470,028
$ 49,039,484
2013
2012
2009
2008
2007
2006
$0
6,934,658
863,174
For the Year Ended August 31,
Instruction
Research
Public service
Academic support
Student services
Institutional support
Operation and maintenance of plant
Scholarships and fellowships
Auxiliary enterprises
Depreciation
Contracted services with UTB
Total Operating Expenses
Interest on capital related debt
Loss on disposal of fixed assets
Total Non-Operating Expenses
Total Expenses
Change in Net Assets
Total governmental activities
11.55%
0.00%
0.53%
3.31%
4.89%
22.63%
9.08%
31.92%
1.95%
7.44%
0.00%
93.29%
5.48%
1.22%
6.71%
100.00%
$
8,451,642
11.12%
0.00%
0.50%
9.77%
10.09%
32.95%
14.88%
44.04%
3.54%
11.85%
0.00%
138.75%
11.58%
-50.33%
-38.75%
100.00%
$ 24,633,459
0.00%
0.00%
0.00%
0.00%
0.00%
14.99%
1.87%
0.00%
0.90%
7.59%
64.85%
90.20%
9.01%
0.79%
9.80%
100.00%
$
5,623,831
2011
0.00%
0.00%
0.00%
0.00%
0.00%
7.80%
0.10%
0.00%
0.69%
5.70%
78.30%
92.59%
7.13%
0.28%
7.41%
100.00%
$
6,641,619
2010
0.00%
0.00%
0.00%
0.00%
0.00%
4.71%
1.80%
0.00%
1.45%
5.10%
78.88%
91.93%
6.59%
1.47%
8.07%
100.00%
$
4,446,153
0.00%
0.00%
0.00%
0.00%
0.00%
3.89%
4.35%
0.00%
1.26%
5.16%
78.20%
92.85%
6.94%
0.21%
7.15%
100.00%
$
3,671,579
Note:
As a result of our partnership agreement with The University of Texas at Brownsville, the reporting for fiscal years 2006-2012 were done at the partnership level.
73
0.00%
0.00%
0.00%
0.00%
0.00%
4.01%
2.33%
0.00%
1.60%
3.56%
80.61%
92.11%
7.64%
0.25%
7.89%
100.00%
$
9,570,453
0.00%
0.00%
0.00%
0.00%
0.00%
4.72%
1.63%
0.00%
1.25%
3.78%
80.91%
92.29%
7.52%
0.19%
7.71%
100.00%
$
9,081,104
0.00%
0.00%
0.00%
0.00%
0.00%
3.86%
2.29%
0.00%
1.15%
4.14%
81.82%
93.26%
6.54%
0.20%
6.74%
100.00%
$
7,560,720
0.00%
0.00%
0.00%
0.00%
0.00%
3.55%
2.64%
0.00%
1.40%
4.45%
82.92%
94.96%
4.93%
0.11%
5.04%
100.00%
$
6,602,699
Texas Southmost College District
Statistical Supplement 4
Tuition and Fees
Last Ten Academic Years
(unaudited)
Resident
Fees per Semester Credit Hour (SCH) and per Student
Academic
Year
(Fall)
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
In-District
Tuition
$
$
50.00
50.00
50.00
50.00
50.00
50.00
50.00
31.00
31.00
31.00
Out-of-District
Tuition
$
$
100.00
100.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
Building Use
$
$
35.00
35.00
105.95
100.65
91.47
82.50
77.50
66.00
58.00
44.00
Institutional
Support
(per student)
General Use
Fee
$
$
32.00
35.00
-
$
$
60.00
60.00
-
Student Services
Fee (per student)
$
$
60.00
60.00
-
Student
Service
$
$
12.00
12.00
12.00
12.00
12.00
12.00
12.00
10.00
Student Union
(per student)
$
$
45.30
45.30
45.30
45.30
45.30
45.30
41.56
41.56
41.56
Computer Use
$
$
12.00
12.00
12.00
12.00
12.00
11.00
10.00
10.00
Records Fee
(per student)
$
$
Technology Fee
(per student)
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
$
$
45.00
45.00
45.00
45.00
45.00
30.00
30.00
30.00
Advising
(per student)
$
$
50.00
50.00
50.00
50.00
50.00
50.00
50.00
25.00
International
Education
(per student)
Library Fee
$
$
5.00
5.00
5.00
5.00
4.00
3.00
3.00
2.00
$
$
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
Medical
Services (per
student)
$
$
24.20
24.20
22.00
20.00
20.00
20.00
20.00
20.00
Student
Recreation (per
student)
Athletic Fee
$
$
$
$
79.00
79.00
79.00
79.00
79.00
79.00
79.00
79.00
79.00
79.00
7.27
7.00
7.00
7.00
5.00
-
Cost for 12
SCH Out-ofDistrict
Cost for 12
SCH In-District
$
$
1,603.00
1,684.30
2,562.14
2,495.30
2,382.94
2,273.30
2,177.30
1,708.56
1,600.56
1,371.56
841
$
$
2,203.00
2,284.30
2,562.14
2,495.30
2,382.94
2,273.30
2,177.30
1,936.56
1,828.56
1,599.56
Increase from
Prior Year InDistrict
-4.83%
-34.26%
2.68%
4.72%
4.82%
4.41%
27.43%
6.75%
16.70%
16.77%
Increase from
Prior Year Out-of
District
-3.56%
-10.84%
2.68%
4.72%
4.82%
4.41%
12.43%
5.91%
14.32%
14.05%
1,057
Non - Resident
Fees per Semester Credit Hour (SCH) and per Student
Academic
Year
(Fall)
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Out of StateTuition
$
$
150.00
150.00
401.00
363.00
360.00
327.00
331.00
328.00
325.00
326.00
InternationalTuition
$
$
150.00
150.00
401.00
363.00
360.00
327.00
331.00
328.00
325.00
326.00
Building Use
$
$
35.00
67.00
105.95
100.65
91.47
82.50
77.50
66.00
58.00
44.00
Institutional
Support (per
student)
General Use
Fee
$
$
32.00
35.00
-
$
$
60.00
60.00
-
Student Services
Fee (per student)
$
$
60.00
60.00
-
Student
Service
$
$
60.00
12.00
12.00
12.00
12.00
12.00
12.00
12.00
10.00
Student Union
(per student)
$
$
45.30
45.30
45.30
45.30
45.30
45.30
41.56
41.56
41.56
Computer Use
$
$
12.00
12.00
12.00
12.00
12.00
11.00
10.00
10.00
Records Fee
(per student)
0
$
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
Automated (per
student)
$
$
45.00
45.00
45.00
45.00
45.00
30.00
30.00
30.00
Advising
(per student)
$
$
50.00
50.00
50.00
50.00
50.00
50.00
50.00
25.00
Library Fee
$
$
5.00
5.00
5.00
5.00
4.00
3.00
3.00
2.00
International
Education (per
student)
$
$
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
Medical
Services Fees
(per student)
$
$
24.20
24.20
22.00
20.00
20.00
20.00
20.00
20.00
Student
Recreation (per
student)
Athletic Fee
$
$
$
$
79.00
79.00
79.00
79.00
79.00
79.00
79.00
79.00
79.00
79.00
7.27
7.00
7.00
7.00
5.00
-
Cost for
12
SCH Out of
State
$
$
2,803.00
3,988.30
6,774.14
6,251.30
6,102.94
5,597.30
5,549.30
5,272.56
5,128.56
4,911.56
3,589
Cost for
12
SCH
International
$
$
2,803.00
3,988.30
6,774.14
6,251.30
6,102.94
5,597.30
5,549.30
5,272.56
5,128.56
4,911.56
3,589
Note: Includes basic enrollment tuition and fees but excludes course based fees such as laboratory fees, testing fees and certification fees.
74
Increase from
Prior Year
Out of State
-29.72%
-41.12%
8.36%
2.43%
9.03%
0.86%
5.25%
2.81%
4.42%
9.18%
Increase from
Prior Year
International
-29.72%
-41.12%
8.36%
2.43%
9.03%
0.86%
5.25%
2.81%
4.42%
9.18%
Texas Southmost College District
Statistical Supplement 5
Assessed Value and Taxable Assessed Value of Real and Personal Property
Last Ten Fiscal Years
(unaudited)
(amounts expressed in thousands)
Fiscal Year
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
Assessed Valuation
of Real and Personal
Property
$
12,466,614
12,348,966
12,073,591
11,882,764
11,737,622
11,520,282
11,620,454
10,795,407
9,771,062
8,461,197
Less:
Exemptions
$
1,076,874
1,034,814
1,003,230
1,033,040
1,014,943
993,745
1,179,543
1,056,700
984,237
797,979
Direct Rate
Taxable
Assessed Value
(TAV)
$
11,389,740
11,314,152
11,070,361
10,849,724
10,722,679
10,526,537
10,440,911
9,738,707
8,786,825
7,663,218
Source: Cameron County Appraisal District
Notes: Property is assessed at full market value.
(a) per $100 Taxable Assessed Valuation
75
Ratio of Taxable
Assessed Value
to Assessed
Value
91.36%
91.62%
91.69%
91.31%
91.35%
91.37%
89.85%
90.21%
89.93%
90.57%
Maintenance
&
Operations
(a)
$
0.100972
0.101596
0.101075
0.103723
0.103871
0.108949
0.110614
0.111423
0.109955
0.109161
Debt
Service
(a)
$
0.063122
0.061339
0.061860
0.060303
0.058552
0.052975
0.050475
0.049666
0.051134
0.053611
Total
(a)
$
0.164094
0.162935
0.162935
0.164026
0.162423
0.161924
0.161089
0.161089
0.161089
0.162772
Texas Southmost College District
Statistical Supplement 6
State Appropriation per FTSE and Contact Hour
Last Ten Fiscal Years
(unaudited)
(amounts expressed in thousands)
Appropriation per Contact Hour
Appropriation per FTSE*
Fiscal Year
2014-15
State
Appropriation
$
6,847
FTSE1
(a)
2,163
Academic
Contact
Hours
(a)
State
Appropriation
per FTSE
$
3,165
1,039
Voc/Tech
Contact
Hours
(b)
379
Total Contact
Hours
State
Appropriation
per Contact
Hour
1,418
4.83
2013-14
6,847
2,105
3,253
995
374
1,369
5.00
2012-13
11,244
3,178
3,538
1,170
675
1,845
6.09
2011-12
11,333
5,569
2,035
2,734
805
3,539
3.20
2010-11
12,464
5,769
2,161
3,043
1,016
4,059
3.07
2009-10
14,355
5,963
2,407
2,795
1,173
3,968
3.62
2008-09
13,984
5,767
2,425
2,498
1,116
3,613
3.87
2007-08
14,154
6,287
2,251
2,682
1,152
3,834
3.69
2006-07
12,468
6,405
1,947
2,849
1,148
3,997
3.12
2005-06
12,270
5,661
2,167
2,654
1,097
3,751
3.27
2004-05
10,842
5,253
2,064
2,705
965
3,671
2.95
Notes:
1
FTSE is defined as the number of fall semester credit hours divided by 15.
*Full Time Student Equivalent (FTSE)
(a) Source CBM004
(b) Source CBM004 and CBM00C
76
Texas Southmost College District
Statistical Supplement 7
Principal Taxpayers
Last Ten Tax Years
(unaudited)
Taxpayer
AEP TEXAS CENTRAL CO
AT&T
BROWNSVILLE MEDICAL CENTER
CAMERON ACQUISITIONS LLC
CBL/SUNRISE COMMONS LP
COLUMBIA VALLEY HEALTHCARE SYS LP
H E BUTT GROCERY CO
KEPPEL AMFELS
KIMCO BROWNSVILLE LP
RICH-SEAPAK CORP
SAPPHIRE VP LP
SOUTHWESTERN BELL TELE
TEXAS AND KANSAS CITY CABLE PARTNERS
TITAN WHEEL INTERNATIONAL INC
TRANSMONTAIGNE PRODUCT SERVICE INC
TRICO PRODUCTS CORP
VHS BROWNSVILLE HOSPITAL COMPANY, LLC
WAL-MART REAL ESTATE BUSINESS TR
WAL-MART STORES EAST INC
WAL-MART STORES INC
COMCAST CORP
BAHIA MAR TOWER LLC
WAL-MART STORES TEXAS LP
Type of Business
Utility
$
Utility
Service
Land
Retail
Service
Retail
Shipyard
Real Estate
Food Processor
Real Estate
Utility
Service
Manufacturing
Petroleum Products
Manufacturing
Service
Retail
Retail
Retail
Service
Real Estate
Retail
Totals $
Total Taxable Assessed Value
Taxpayer
AEP TEXAS CENTRAL CO
AT&T
BROWNSVILLE MEDICAL CENTER
Type of Business
Utility
Utility
Service
$
2014
2013
48,832 $
40,643
29,395
23,936
204,907
28,056
31,931
28,578
24,580
46,784
507,643 $
11,389,740
2014
$
Taxable Assessed Value (TAV) by Tax Year ($000 omitted)
2011
2010
2009
2012
44,975 $
40,645
29,319
27,547
28,490
26,327
29,198
22,504
60,505
24,997
334,506 $
11,314,152
2013
$
36,989
40,670
29,329
22,036
37,335
28,755
31,919
30,266
22,497
23,913
$
0.40%
-
0.00%
0.00%
$
22,190
24,228
39,309
29,212
38,870
29,349
32,572
48,718
26,787
27,691
26,889
$
24,055
25,479
33,477
40,500
38,923
31,461
24,559
28,450
34,675
33,603
24,855
22,778
$
248,604
11,070,361
$
10,849,724
$
10,722,679
$
10,526,537
$
10,440,912
$
9,738,707
$
8,786,825
$
7,663,218
% of Taxable Assessed Value (TAV) by Tax Year
2011
2010
2009
0.33%
-
0.32%
-
-
0.37%
-
-
2008
0.25%
-
0.26%
0.26%
-
0.00%
-
-
-
-
Shipyard
0.21%
0.24%
-
-
-
-
Real
-
0.00%
-
-
Food Processor
1.80%
0.00%
0.20%
0.34%
Real Estate
-
0.00%
Utility
-
0.00%
-
2005
0.42%
0.41%
-
0.48%
-
0.27%
0.24%
0.39%
0.36%
0.37%
0.37%
0.40%
0.27%
0.30%
0.30%
0.32%
-
-
2006
0.31%
0.39%
-
-
0.30%
0.24%
-
0.26%
0.27%
0.33%
0.36%
0.45%
0.59%
0.22%
0.25%
0.30%
-
-
-
0.48%
0.40%
0.46%
-
0.20%
-
0.18%
0.19%
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
-
0.24%
0.27%
Petroleum Products
0.25%
0.25%
0.26%
0.26%
-
-
-
0.18%
0.18%
Manufacturing
0.28%
0.23%
0.29%
0.31%
-
-
0.37%
0.45%
0.26%
0.27%
-
0.00%
0.20%
WAL-MART STORES EAST INC
Retail
-
0.00%
WAL-MART STORES INC
Retail
0.22%
0.20%
Service
0.41%
0.53%
-
Real Estate
-
0.22%
-
Retail
Totals
4.46%
2.96%
0.22%
2.74%
Source: Cameron County Appraisal District
77
0.26%
-
0.00%
0.25%
0.21%
-
-
0.32%
-
0.44%
-
Retail
WAL-MART STORES TEXAS LP
-
2007
0.24%
0.32%
-
Service
Service
COMCAST CORP
0.36%
0.24%
Manufacturing
WAL-MART REAL ESTATE BUSINESS TR
BAHIA MAR TOWER LLC
15,841
-
249,556
0.26%
VHS BROWNSVILLE HOSPITAL COMPANY, LLC
20,393
$
Retail
TRICO PRODUCTS CORP
23,207
17,315
226,474
Service
TRANSMONTAIGNE PRODUCT SERVICE INC
15,594
20,201
36,507
$
0.37%
TITAN WHEEL INTERNATIONAL INC
23,765
15,887
39,557
291,127
0.00%
TEXAS AND KANSAS CITY CABLE PARTNERS
22,912
17,726
36,443
$
0.36%
SAPPHIRE VP LP
2005
31,920
36,855
36,468
35,078
16,018
19,963
-
324,755
-
SOUTHWESTERN BELL TELE
$
$
0.36%
RICH-SEAPAK CORP
2006
27,168
36,176
38,706
35,014
17,265
16,018
-
323,452
Land
KIMCO BROWNSVILLE LP
$
$
Retail
KEPPEL AMFELS
2007
23,371
37,525
38,923
31,461
18,113
-
296,320
CBL/SUNRISE COMMONS LP
H E BUTT GROCERY CO
$
$
CAMERON ACQUISITIONS LLC
COLUMBIA VALLEY HEALTHCARE SYS LP
2008
26,655 $
24,840
38,904
31,461
27,235
27,674
62,483
31,284
29,364
303,708
2012
0.43%
35,034
38,734
29,339
22,140
39,146
23,996
28,005
33,508
-
-
0.20%
0.26%
0.48%
0.20%
0.22%
2.73%
0.22%
3.02%
0.23%
3.09%
0.22%
2.79%
0.24%
0.00%
2.33%
0.23%
2.84%
0.00%
3.24%
Texas Southmost College District
Statistical Supplement 8
Property Tax Levies and Collections
Last Ten Tax Years
(unaudited)
Fiscal Year
Ended
August 31
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Levy
(a)
$ 18,689,879
18,122,935
17,764,776
17,462,677
17,119,086
16,701,520
16,647,944
15,360,034
13,817,049
12,262,774
Cumulative
Adjusted
Levy
Collections Tax Levy
Adjustments
Year of Levy (c)
(b)
$
(2,964) $ 18,373,386 $ 17,654,226
(45,546)
18,077,390
17,112,052
(42,470)
17,722,306
16,879,439
19,431
17,482,108
16,622,407
(42,994)
17,076,092
16,188,556
99,611
16,801,131
15,875,009
(26,328)
16,621,616
15,730,757
(24,709)
15,335,325
14,498,634
(85,488)
13,731,561
12,940,923
(61,327)
12,201,447
11,481,393
Percentage
96.09%
94.66%
95.24%
95.08%
94.80%
94.49%
94.64%
94.54%
94.24%
94.10%
Prior
Current
Cumulative
Total
Collections of
Collections of Collections of
Prior Levies
Adjusted
Prior Levies
Collections
(C+D+E)
Levy
(d)
(e)
$ 936,801 $ 18,591,027
101.18%
17,843,818
98.71%
731,766
16,879,439
95.24%
453,990
17,076,397
97.68%
457,456
155,210
16,801,222
98.39%
638,823
89,468
16,603,300
98.82%
691,811
55,737
16,478,305
99.14%
696,394
28,482
15,223,510
99.27%
679,653
15,888
13,636,464
99.31%
622,890
14,948
12,119,231
99.33%
Source: Cameron County Tax Assessor/Collector and District records.
(a) As reported in notes to the financial statements for the year of the levy.
(b) As of August 31st of the current reporting year.
(c) Property tax only - does not include penalties and interest
(d) Represents cumulative collections of prior years not collected in the current year or the year of the tax levy.
(e) Represents current year collections of prior years levies.
Total Collections = C + D + E
78
Texas Southmost College District
Statistical Supplement 9
Ratios of Outstanding Debt
Last Ten Fiscal Years
(unaudited)
`
For the Year Ended August 31 (amounts expressed in thousands)
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
General Bonded Debt
General obligation bonds
$
60,605
$
64,085
$
67,450
$
70,505
$
73,275
$
75,775
$
78,000
$
72,440
$
64,000
$
49,490
Notes
-
-
-
-
-
-
-
-
-
-
Less: Funds restricted for debt service
-
-
-
-
-
-
-
-
-
-
Net general bonded debt
$
60,605
$
64,085
$
67,450
$
70,505
$
73,275
$
75,775
$
78,000
$
72,440
$
64,000
$
49,490
$
16,070
-
$
21,820
-
$
22,890
-
$
23,915
-
$
24,900
-
$
25,845
-
$
26,765
-
$
27,645
-
$
28,495
-
$
28,890
-
$
76,675
$
85,905
$
90,340
$
94,420
$
98,175
$
101,620
$
104,765
$
100,085
$
92,495
$
78,380
$
296.87
$
319.71
$
336.49
$
351.74
$
365.55
$
378.03
$
389.13
$
361.39
$
319.28
$
246.90
Other Debt
Revenue bonds
Notes
Capital lease obligations
Total Outstanding Debt
-
-
-
-
-
-
-
-
-
-
General Bonded Debt Ratios
Per Capita
Per FTSE
28,019
As a percentage of Taxable Assessed Value
20,165
0.53%
21,224
0.58%
22,185
0.61%
23,057
0.64%
23,844
0.66%
24,544
0.68%
22,794
0.70%
20,138
0.65%
15,573
0.58%
0.45%
Total Outstanding Debt Ratios
Per Capita
Per FTSE
As a percentage of Taxable Assessed Value
$
375.59
35,448
0.67%
$
428.56
27,031
0.78%
$
450.69
28,427
0.82%
$
471.04
29,711
0.85%
$
489.78
30,892
0.89%
Notes: Ratios calculated using population and TAV from current year. Debt per student calculated using full-time-equivalent enrollment.
79
$
506.96
31,976
0.92%
$
522.65
32,966
0.95%
$
499.30
31,493
0.90%
$
461.44
29,105
0.84%
$
391.02
24,663
0.71%
Texas Southmost College District
Statistical Supplement 10
Legal Debt Margin Information
Last Ten Fiscal Years
(unaudited)
For The Year Ended August 31 (amount expressed in thousands)
2015
Taxable Assessed Value
2014
2013
2012
2011
2010
2009
2008
2007
2006
$
11,389,740
$
11,314,152
$
11,070,361
$
10,849,724
$
10,722,679
$
10,526,537
$
10,440,911
$
9,738,707
$
8,786,826
$
7,663,218
$
56,949
$
56,571
$
55,352
$
54,249
$
53,613
$
52,633
$
52,205
$
48,694
$
43,934
$
38,316
General Obligation Bonds
Statutory Tax Levy Limit for Debt Service
Less: Funds Restricted for Repayment of General Obligation Bonds
Total Net General Obligation Debt
Current Year Debt Service Requirements
Excess of Statutory Limit for Debt Service over Current Requirements
Net Current Requirements as a % of Statutory Limit
-
-
-
-
-
-
-
-
-
-
56,949
56,571
55,352
54,249
53,613
52,633
52,205
48,694
43,934
38,316
4,355
$
52,594
7.65%
3,365
$
53,206
5.95%
3,055
$
52,297
2,770
$
5.52%
Note: Texas Education Code Section 130.122 limits the debt service tax levy of community colleges to $0.50 per hundred dollars taxable assessed valuation.
80
51,479
5.11%
2,500
$
51,113
4.66%
2,225
$
50,408
4.23%
1,690
$
50,515
3.24%
1,560
$
47,134
3.20%
1,490
$
42,444
3.39%
2,570
$
35,746
6.71%
Texas Southmost College District
Statistical Supplement 11
Pledged Revenue Coverage
Last Ten Fiscal Years
(unaudited)
Pledged Revenues
($000 omitted)
Debt Service Requirements
($000 omitted)
Student
Fiscal Year
Union
2014
Bookstore
Fees *
Ended August 31
2015
Student
$
Tuition
-
$
134
$
Income
109
134
109
Parking
Investment
Fees
$
216
216
Rec Center
Income
$
63
63
Fees
$
Coverage
Total
Principal
Interest
$
$
1,814
2,336
630
1,814
2,336
630
Total
Ratio
799
1,429
1.63
799
1,429
1.63
2013
1,038
160
109
431
45
1,768
3,551
1,025
1,073
2,098
1.69
2012
1,152
320
93
527
42
2,010
4,144
985
1,114
2,099
1.97
2011
1,239
364
156
436
29
2,165
4,389
945
1,150
2,095
2.09
2010
1,103
397
128
406
38
2,035
4,107
920
1,182
2,102
1.95
2009
1,093
385
142
345
72
1,912
3,949
880
1,217
2,097
1.88
2008
1,046
402
156
850
1,251
2,101
2.00
397
145
288
278
4,196
1,075
311
281
1,993
2007
2006
2,086
4,262
395
1,444
1,839
2.32
1,043
341
133
345
267
2,113
4,242
295
1,046
1,341
3.16
2005
1,017
320
170
346
354
-
2,208
380
650
1,030
2.14
81
Texas Southmost College District
Statistical Supplement 12
Demographic and Economic Statistics - Taxing District
Last Ten Fiscal Years
(unaudited)
Calendar
Year
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Pledged Revenues
($000 omitted)
*District Population
$
204,145
202,702
200,449
198,762
194,964
192,500
191,006
187,979
187,679
183,675
179,028
**Estimate District
Personal Income ***Cameron County
Personal Income ****Cameron County
(a) (thousands of
dollars)
Per Capita
Unemployment Rate
$ 5,063,204,290 $
24,802
8.3%
4,846,402,118
23,909
10.1%
4,657,632,964
23,236
10.5%
4,449,883,656
22,388
11.8%
4,364,854,032
22,388
11.2%
4,309,690,000
22,388
9.9%
4,085,045,322
21,387
6.8%
3,696,982,993
19,667
6.0%
3,483,134,561
18,559
6.6%
3,197,781,750
17,410
7.5%
3,042,401,832
16,994
8.7%
Sources:
*District Population from U.S. Census Bureau.
Note: City Population data available from U.S. Census Bureau within the district boundaries were totaled for
District Population.
**Estimated District Personal Income (thousand of dollars) produced by multiplying Cameron County Personal
Income Per Capita by the District Population. TSC District includes the following school districts: Brownsville
ISD, Los Fresnos ISD, and Point Isabel ISD. TSC District population totals about 50% of Cameron County.
Assumption used for TSC District per capita income equals that of Cameron County. Cameron County Total
Estimated Population: 417,276 (U.S. Census Bureau)
***Cameron County Personal Income from U.S. Bureau of Economic Analysis.
http://www.bea.gov/beahome.html
***** Unemployment Rate from Texas Association of Counties
Cameron County Unemployment Rate from Texas Association of Counties (Cameron County Profile).
http://www.txcip.org/
N/A - Not Available
82
Texas Southmost College District
Statistical Supplement 13
Principal Employers
(unaudited)
2015
2014
Brownsville ISD
Cameron County
UT Rio Grande Valley
AMFELS
Wal-Mart
Abundant Life Home Health
City of Brownsville
Caring For You Home Health
HEB Food Stores
Valley Regional Medical Center
7,670
1,950
1,734
1,650
1,413
1,300
1,227
1,200
975
900
**Percentage
of Total
Employment
11.02%
2.80%
2.49%
2.37%
2.03%
1.87%
1.76%
1.72%
1.40%
1.29%
Total
20,019
28.77%
Employer
Employees
Employer
7,708
2,635
2,040
1,625
1,400
1,200
1,200
1,055
975
786
**Percentage
of Total
Employment
11.08%
3.79%
2.93%
2.34%
2.01%
1.72%
1.72%
1.52%
1.40%
1.13%
20,624
29.64%
Employees
69,571 Brownsville ISD
Caring For You Home Health
Cameron County
UT Rio Grande Valley
AMFELS
City of Brownsville
Abundant Life Home Health
Wal-Mart
HEB Food Stores
Valley Regional Medical Center
Total
Source:
*Brownsville Economic Development Council. http://www.bedc.com/
Source:
*Brownsville Economic Development Council. http://www.bedc.com/
**Brownsville Total Employment - Texas Labor Market Review http://www.texasworkforce.org/
**Brownsville Total Employment - Texas Labor Market Review http://www.texasworkforce.org/
Percentage of Total Employment was calculated using Brownsville 2012 Annual Employment.
http://www.texasworkforce.org/
Brownsville Total Employment: 69,571
Percentage of Total Employment was calculated using Brownsville 2012 Annual Employment.
http://www.texasworkforce.org/
Brownsville Total Employment: 69,878
Note: Employer data was not available for Los Fresnos ISD and Point Isabel ISD.
Note: Employer data was not available for Los Fresnos ISD and Point Isabel ISD.
2013
2012
Brownsville ISD
Cameron County
AMFELS
University of Texas at Brownsville
City of Brownsville
Wal-Mart
HEB Food Stores
Valley Regional Medical Center
Valley Baptist Medical Center - Brownsville
Convergys's Corp
7,708
2,040
1,650
1,622
1,200
1,055
975
786
738
623
**Percentage
of Total
Employment
11.22%
2.97%
2.40%
2.36%
1.75%
1.54%
1.42%
1.14%
1.07%
0.91%
Total
18,397
26.77%
Employer
Employees
Source:
*Brownsville Economic Development Council. http://www.bedc.com/
**Brownsville Total Employment - Texas Labor Market Review http://www.texasworkforce.org/
Percentage of Total Employment was calculated using Brownsville 2012 Annual Employment.
http://www.texasworkforce.org/
Brownsville Total Employment: 68,717
Note: Employer data was not available for Los Fresnos ISD and Point Isabel ISD.
Brownsville ISD
UTB/TSC
Cameron County
AMFELS
City of Brownsville
Wal-Mart
HEB Food Stores
Valley Regional Medical Center
Valley Baptist Medical Center - Brownsville
Convergys's Corp
7,708
2,343
2,040
1,650
1,200
1,055
975
786
738
623
**Percentage
of Total
Employment
11.35%
3.45%
3.00%
2.43%
1.77%
1.55%
1.44%
1.16%
1.09%
0.92%
Total
19,118
28.15%
Employer
Employees
Source:
*Brownsville Economic Development Council. http://www.bedc.com/
**Brownsville Total Employment - Texas Labor Market Review http://www.texasworkforce.org/
Percentage of Total Employment was calculated
using Brownsville 2012 Annual Employment.
Brownsville Total Employment: 67,921
Note: Employer data was not available for Los Fresnos ISD and Point Isabel ISD.
83
69,878
Texas Southmost College District
Statistical Supplement 14
Faculty, Staff, and Administrators Statistics
Last Ten Fiscal Years
(unaudited)
2015
2014
2013
2012
2011
Fiscal Year
2010
2009
2008
2007
2006
2005
Faculty
Full-Time
Part-Time
Total
79.0
52.0
131.0
78.0
49.0
127.0
53.0
56.0
109.0
-
-
-
-
-
-
-
-
Full-Time
Part-Time
60.3%
39.7%
61.4%
38.6%
48.6%
51.4%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
126.0
43.0
169.0
118.0
35.0
153.0
46.0
23.0
69.0
17.0
1.0
18.0
15.0
1.0
16.0
19.0
5.0
24.0
18.0
6.0
24.0
17.0
5.0
22.0
15.0
6.0
21.0
14.0
3.0
17.0
10.0
5.0
15.0
Full-Time
Part-Time
74.6%
25.4%
77.1%
22.9%
66.7%
33.3%
94.4%
5.6%
93.8%
6.3%
79.2%
20.8%
75.0%
25.0%
77.3%
22.7%
71.4%
28.6%
82.4%
17.6%
66.7%
33.3%
FTSE per Full-time Faculty
FTSE per Full-Time Staff Member
27.4
17.2
27.0
17.8
60.0
69.1
0.0
327.6
0.0
384.6
0.0
313.8
0.0
320.4
0.0
369.8
0.0
427.0
0.0
404.4
0.0
525.3
50,511
$ 47,880
Percent
Staff and Administrators
Full-Time
Part-Time
Total
Percent
Average Annual Faculty Salary
$
50,263
$
$
84
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Texas Southmost College District
Statistical Supplement 15
Enrollment Details
Last Five Fiscal Years
(unaudited)
Student Classification
Freshman
Sophomore
Associate
Bachelors
Unclassified
Total
Fall 2014
Number
Percent
2,668
66.25%
921
22.87%
91
2.26%
44
1.09%
303
7.52%
4,027 100.00%
Fall 2013
Number
Percent
2,656
72.31%
704
19.17%
61
1.66%
36
0.98%
216
5.88%
3,673 100.00%
Fall 2012
Number
Percent
4,066
69.00%
1,297
22.01%
99
1.68%
57
0.97%
374
6.35%
5,893 100.00%
Fall 2011
Number
4,759
3,065
686
155
1,838
10,503
Semester Hour Load
Less than 3
3-5 semester hours
6-8 Semester hours
9-11 semester hours
12-14 semester hours
15-17 semester hours
18 & over
Total
Fall 2014
Number
Percent
15
0.37%
896
22.25%
1,072
26.62%
814
20.21%
1,148
28.51%
76
1.89%
6
0.15%
4,027 100.00%
Fall 2013
Number
Percent
21
0.57%
557
15.16%
1,117
30.41%
713
19.41%
1,196
32.56%
66
1.80%
3
0.08%
3,673 100.00%
Fall 2012
Number
Percent
189
3.21%
1,172
19.89%
1,716
29.12%
988
16.77%
1,704
28.92%
120
2.04%
4
0.07%
5,893 100.00%
Fall 2011
Number
Percent
423
4.03%
2,279
21.70%
2,586
24.62%
2,095
19.95%
2,852
27.15%
249
2.37%
19
0.18%
10,503 100.00%
Average course load
Tuition Status
Texas Resident (In-District)
Texas Resident (Out-of-District)
Non-Resident Tuition
Foreign Resident In-Dist (HB1403)
Foreign Resident Out-Dist (HB1403)
Tuition Exemption/Waiver
Total
9
Fall 2014
Number
Percent
3,562
88.45%
292
7.25%
60
1.49%
28
0.70%
2
0.05%
83
2.06%
4,027 100.00%
9
8.2
Fall 2013
Number
Percent
2,605
70.92%
264
7.19%
41
1.12%
33
0.90%
0.00%
730
19.87%
3,673 100.00%
Fall 2012
Number
Percent
4,600
78.06%
875
14.85%
120
2.04%
44
0.75%
3
0.05%
251
4.26%
5,893 100.00%
Percent
45.31%
29.18%
6.53%
1.48%
17.50%
100.00%
8.1
Fall 2011
Number
Percent
7,909
75.30%
1,746
16.62%
115
1.09%
80
0.76%
13
0.12%
640
6.09%
10,503
100.00%
Fall 2010
Number
5,546
3,031
633
153
1,680
11,043
Fall 2010
Number
Percent
646
6.15%
2,569
24.46%
2,626
25.00%
1,729
16.46%
3,029
28.84%
437
4.16%
7
0.07%
11,043
105.14%
8.0
Fall 2010
Number
Percent
7,081
67.42%
1,254
11.94%
51
0.49%
103
0.98%
7
0.07%
2,547
24.25%
11,043
105.14%
Note: Only five years of information are presented in accordance with the Budget Requirements and Annual Financial Reporting Requirements for Texas Public
Community and Junior Colleges published by the Texas Higher Education Coordinating Board for fiscal year 2015.
85
Percent
50.22%
27.45%
5.73%
1.39%
15.21%
100.00%
Texas Southmost College District
Statistical Supplement 16
Student Profile
Last Five Fiscal Years
(unaudited)
Gender
Female
Male
Total
Fall 2014
Number
Percent
1,636
40.63%
2,391
59.37%
4,027 100.00%
Fall 2013
Number
Percent
2,115
57.58%
1,558
42.42%
3,673 100.00%
Fall 2012
Number
Percent
3,318
56.30%
2,575
43.70%
5,893 100.00%
Fall 2011
Number
Percent
5,889
56.07%
4,614
43.93%
10,503
100.00%
Fall 2010
Number
Percent
6,287
59.86%
4,756
45.28%
11,043 105.14%
Ethnic Origin
White/Non-Hispanic
Black/Non-Hispanic
Hispanic
Asian or Pacific Islander
American Indian or Alaskan Native
Non-Resident Aliens or Foreign Natl.
Not Reported
Total
Fall 2014
Number
Percent
179
4.44%
6
0.15%
3,723
92.45%
28
0.70%
1
0.02%
41
1.02%
49
1.22%
4,027 100.00%
Fall 2013
Number
Percent
145
3.95%
6
0.16%
3,443
93.74%
20
0.54%
1
0.03%
44
1.20%
14
0.38%
3,673 100.00%
Fall 2012
Number
Percent
199
3.38%
15
0.25%
5,430
92.14%
42
0.71%
3
0.05%
189
3.21%
15
0.25%
5,893 100.00%
Fall 2011
Number
Percent
4,391
41.81%
62
0.59%
5,650
53.79%
118
1.12%
108
1.03%
138
1.31%
36
0.34%
10,503
100.00%
Fall 2010
Number
Percent
1,411
13.43%
57
0.54%
9,106
86.70%
83
0.79%
68
0.65%
251
2.39%
67
0.64%
11,043 105.14%
Age
Under 18
18 -21
22 - 24
25 - 35 *
36 - 50 **
51 & over
Total
Fall 2014
Number
Percent
738
18.33%
1,722
42.76%
513
12.74%
726
18.03%
288
7.15%
40
0.99%
4,027 100.00%
Fall 2013
Number
Percent
661
18.00%
1,580
43.02%
486
13.23%
598
16.28%
297
8.09%
51
1.39%
3,673 100.00%
Fall 2012
Number
Percent
1,691
28.70%
2,350
39.88%
612
10.39%
822
13.95%
346
5.87%
72
1.22%
5,893 100.00%
Fall 2011
Number
Percent
1,471
14.01%
4,380
41.70%
1,504
14.32%
2,200
20.95%
808
7.69%
140
1.33%
10,503
100.00%
Fall 2010
Number
Percent
2,176
20.72%
4,365
41.56%
1,455
13.85%
2,069
19.70%
840
8.00%
138
1.31%
11,043 105.14%
Average Age
21
23
22
24
21
Note: Only five years of information are presented in accordance with the Budget Requirements and Annual Financial Reporting Requirements for Texas Public
Community and Junior Colleges published by the Texas Higher Education Coordinating Board for fiscal year 2014.
86
Texas Southmost College District
Statistical Supplement 17
Transfers to Senior Institutions
2013 Fall Students as of Fall 2014
(Includes only public senior colleges in Texas)
University of Texas - Brownsville
University of Texas - Pan American
University of Texas - Austin
University of Texas - San Antonio
Texas A&M University - College Station
Texas State University
Texas A&M University - Kingsville
Texas A&M University - Corpus Christi
University of Houston - University Park
University of North Texas
University of Texas - Permian Basin
Stephen F. Austin State University
Texas Tech University
University of Texas - Arlington
Sam Houston State University
University of Texas - Tyler
Texas A&M International University
Texas Women's University
University of Houston - Downtown
University of Texas - Dallas
Sul Ross State University
Texas A&M University - Commerce
Texas A&M University - Galveston
Texas A&M University - Texarkana
Prairie View A&M University
University of Texas - El Paso
Baylor College of Medicine - Academics
Lamar University Institute of Technology
Midwestern State University
Sul Ross State University - Rio Grande College
Tarleton State University
Texas A&M University System Health Science Center
Texas Southern University
Texas Tech University Health Science Center
University of Houston - Clear Lake
University of Houston - Victoria
University of North Texas Health Science Center
University of Texas Health Science Center - Houston
University of Texas Health Science Center - San Antonio
University of Texas Medial Branch Galveston
University of Texas Southwestern Medical Center - Dallas
West Texas A&M University
Angelo State University
Transfer
Student
Count
Academic
303
22
13
30
29
18
9
4
1
7
2
4
1
1
1
-
Transfer
Student
Count
Technical
59
8
3
3
4
2
2
3
1
1
-
Transfer
Student
Count
Tech-Prep
23
15
2
9
5
3
1
-
Total
Acad/Tech
Transfer
Students
385
45
15
42
37
22
14
6
1
7
5
4
1
1
1
1
1
1
-
445
86
58
589
Totals
87
Percent
Acad/Tech
Transfer
Students
65.37%
7.64%
2.55%
7.13%
6.28%
3.74%
2.38%
1.02%
0.00%
0.17%
0.00%
0.00%
1.19%
0.85%
0.68%
0.00%
0.00%
0.17%
0.17%
0.17%
0.17%
0.17%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.17%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
100.00%
Texas Southmost College District
Statistical Supplement 18
Capital Asset Information
Fiscal Years 2011 to 2015
Fiscal Year
2015
Academic buildings
Square footage (in thousands)
Libraries
Square footage (in thousands)
Number of Volumes (in thousands)
Administrative and support buildings
Square footage (in thousands)
Dormitories
Square footage (in thousands)
Number of Beds
Apartments
Square footage (in thousands)
Number of beds
Dining Facilities
Square footage (in thousands)
Average daily customers
Athletic Facilities
Square footage (in thousands)
Stadiums
Gymnasiums
Fitness Centers
Tennis Court
Plant facilities
Square footage (in thousands)
Transportation
Cars
Light Trucks/Vans
Buses
2014
2013
2012
2011
19
728
1
45
356
25
560
64
67
140
3
138
2
1
1
6
57
19
728
1
45
356
25
560
64
67
140
3
138
2
1
1
6
57
24
1,058
2
130
1,083
26
614
1
140
459
64
67
140
3
138
2
1
1
7
49
24
1,058
2
130
1,083
26
614
1
140
459
64
67
140
3
138
2
1
1
7
49
24
1,058
2
130
264
26
614
1
140
459
66
68
140
3
138
2
1
1
7
49
2
25
-
2
25
-
7
50
2
7
50
2
7
50
2
Note: Only five years of information are presented in accordance with the Budget Requirements and Annual Financial Reporting Requirements
for Texas Public Community and Junior Colleges published by the Texas Higher Education Coordinating Board for fiscal year 2015.
88
SINGLE AUDIT SECTION
89
SCHEDULE E
TEXAS SOUTHMOST COLLEGE DISTRICT
Schedule of Expenditures of Federal Awards
For the Year Ended August 31, 2015
Federal Grantor/Pass-Through
Grantor/Program Title
U.S. DEPARTMENT OF AGRICULTURE
Pass-through from Texas Department of Human Services:
Child Care Food Program
Total U.S. Department of Agriculture
U.S. DEPARTMENT OF EDUCATION
Passed through Texas Higher Education Coordinating
Board:
Carl Perkins Vocational Education - Basic
Total U.S. Department of Education
Federal
CFDA
Number
Pass-Through
Grantor's
Number
10.558
75G7033
84.048
84246
325,784
325,784
031-0006
21,923
21,923
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Pass-through from Texas Migrant Authority, Inc.:
Child Day Care Center
93.667
Total U.S. Department of Health and Human Services
Total Federal Financial Assistance
Pass-Through
Disbursements
and Expenditures
$
$
Notes to schedule on following pages
90
26,837
26,837
374,544
SCHEDULE E
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended August 31, 2015
Pass-Through
Disbursements
Note 1: Federal Assistance Reconciliation
Federal revenue received by Texas Southmost College District
Federal grants and contracts revenue per Schedule A
Federal revenue received by University of Texas at Brownsville
$
374,544
-
Total Federal Revenues
$
374,544
Note 2: Significant Accounting Policies Used in Preparing the Schedule
The expenditures included in the schedule are reported for the District's fiscal year. Expenditure reports to
funding agencies are prepared on the award period basis. The expenditures reported above represent funds that
have been expended by the District and the University of Texas - Brownsville for the purpose of the award. The
expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal
year. Some amounts reported in the schedule may differ from amounts used in the preparation of the basic
financial statements. Separate accounts are maintained for the different awards to aid in the observance of
limitations and restrictions imposed by the funding agencies. The District has followed all applicable guidelines
issued by various entities in the preparation of the schedule.
Note 3: Expenditures not Subject to Federal Single Audit
The following federal funds were not subject to a federal single audit:
Program Name
84.063 - Federal Pell Grant Program
84.007 - SEOG
84.033 - Federal Work Study Program
Amount
$
4,904,043
114,990
133,003
$
5,152,036
These were not subject to federal single audit because the University of Texas - Brownsville receives certain
federal funds which are disbursed to Texas Southmost College students. These funds are audited as part of
UTB's audit and are not included above.
Note 4: Student Loans Processed and Administrative Costs Recovered
There were no student loans processed or administrative costs recovered.
Note 5: Non-monetary Federal Assistance Received
Texas Southmost College District did not receive any non-monetary federal assistance this fiscal year.
91
SCHEDULE E
TEXAS SOUTHMOST COLLEGE DISTRICT
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended August 31, 2015
(Continued)
Note 6: Amounts Passed Through by the District
Under a partnership agreement with the University of Texas - Brownsville (UTB), UTB agreed to receive,
administer, spend and comply with the grant requirements of all federal grants. All expenditures presented in the
schedule were passed-through to UTB. UTB meets all the characteristics of a subrecipient as outlined in
Circular A-133; however, it is not being treated as a subrecipient because the partnership agreement is intended
to allow UTB to act for and on behalf of the District.
The following amounts were passed-through to the listed subrecipients by the District. These amounts were
from the Endowment College Grant program, CFDA 84.031 from U.S. Department of Education. Under the
grant's guidelines, the corpus plus 50% of the aggregate earnings were restricted for a 20 year period ending
June 2009. Funds are now unrestricted.
84.031 - Title III Endowment College Grant Program
$
92
7,956,333
SCHEDULE F
TEXAS SOUTHMOST COLLEGE DISTRICT
Schedule of Expenditures of State Awards
For the Year Ended August 31, 2015
Grant
Contract
Number
Grantor Agency/
Program Title
TEXAS HIGHER EDUCATION COORDINATING BOARD
Direct
Texas Grant Program
S3 Developmental Education Grant
Texas College Work Study
Texas Educational Opportunity Grant
Top 10%
Accelerate Texas
Total Texas Higher Education Coordinating Board
TEXAS WORKFORCE COMMISSION
Direct
Skills Development Fund
Total Texas Workforce Commission
-
Expenditures
$
2413SDF002
Total State Financial Assistance
245,069
85,000
31,088
912,751
3,000
37,500
1,314,408
106,517
106,517
$
1,420,925
State Revenues - Per Schedule A
State Financial Assistance per Schedule of Expenditures of State Awards
Lease payments from University of Texas - Brownsville
$
1,420,925
-
Total State Revenues per Schedule A
$
1,420,925
Note 1: State Assistance Reconciliation
Note 2: Significant Accounting Policies Used in Preparing the Schedule
The accompanying schedule is presented using the accrual basis of accounting. See Note 2 to the financial statements
for the Texas Southmost College District's significant accounting policies. These expenditures are reported on Texas
Southmost College District's fiscal year. Expenditure reports to funding agencies are prepared on the award period
basis.
93
94
95
96
97
TEXAS SOUTHMOST COLLEGE DISTRICT
Schedule of Findings and Questioned Costs
For the Year Ended August 31, 2015
I. Summary of Auditors' Results
Type of auditors' report on financial statements:
Unmodified.
Internal control over financial reporting:
Material weakness(es) identified?
No
Significant deficiencies identified that are not
considered to be material weakness(es)?
None reported
Internal control over major programs:
Material weakness(es) identified?
No
Significant deficiencies identified that are not
considered to be material weakness(es)?
None reported
Noncompliance which is material to the basic
financial statements
No
Type of auditors' report on compliance with major programs
Unmodified.
Findings and questioned costs for federal awards
as defined in Section 501(a), OMB Circular A-133
and the State of Texas Single Audit Circular
No
Dollar threshold considered between Type A and
Type B federal programs
$300,000
Dollar threshold considered between Type A and
Type B state programs
$300,000
Low risk auditee statement
Yes
Major federal programs
None.
Major state program
Texas Educational Opportunity Grant
II. Findings Relating to the Financial Statements which are Required to be Reported
in Accordance with Generally Accepted Government Auditing Standards
The audit disclosed no finding required to be reported.
III. Findings and Questioned Costs for Federal Awards
None
IV. Findings and Questioned Costs for State Awards
None
98
TEXAS SOUTHMOST COLLEGE DISTRICT
Summary Schedule of Prior Audit Findings
For the Year Ended August 31, 2015
V. Prior Findings and Questioned Costs for Federal and State Awards
None.
99
TEXAS SOUTHMOST COLLEGE DISTRICT
Corrective Action Plan
For the Year Ended August 31, 2015
Not applicable.
100

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